Venmo, a subsidiary of Paypal, announced in a press release on 20 April that it would be adding a feature enabling crypto-currency transactions to be carried out on the platform. What are these currencies? What are Venmo and Paypal’s objectives? We explain everything!
The giant Paypal
Paypal has been a giant in online payments for almost 20 years on an international scale. Paypal has long expressed an interest in crypto-currencies. So this announcement is not all that surprising, but it is a welcome development for its many users. Until now, we didn’t know which platform Paypal had chosen to implement these features. Now we know: it’s Venmo.
The directors of the two subsidiaries are well aware that crypto-currencies are now a flourishing and promising economic market. What’s more, Paypal is already being used to buy crypto-currencies. Indeed, several networks allow their users to pay their transaction fees and their purchases of coins using Paypal. The payments giant has no intention of stopping there, and intends to extend the multitudes of possibilities offered by the world of crypto-currencies.
Venmo at the service of crypto
Venmo was set up in 2009, and the platform has grown enormously in recent years. Very popular, Venmo will total 12 billion transactions in 2019. Venmo is therefore introducing a feature that will very soon make it possible to buy and sell crypto assets. This could be of interest to the platform’s 70 million users, since it will also allow you to store your assets in a wallet!
The crypto currencies that Venmo will be introducing four crypto currencies for the time being. Venmo has selected Bitcoin, Ethereum, Bitcoin cash and Litecoin. This choice is not insignificant, as these are the four most influential crypto-currencies on the market. What’s more, Venmo wants to get its users interested in crypto currencies, even if 30% of them are already curious about the market. What’s more, these crypto currencies may have different blockchain protocols, but they are all highly sought-after by users. They all have this constant need for speed and efficiency, which Venmo and Paypal seem well able to support.
The platform therefore offers its many customers the opportunity to manipulate and carry out fast transactions with the currencies present on the application. But in addition to this, Venmo adds a learning aspect to the crypto world. Venmo gives customers access to trends and prices for each of the currencies directly via the app. Customers can also access a variety of content: videos, guides, ask questions of other customers on the platform to find out more about crypto. Venmo offers a unique and promising experience, where transactions can be carried out quickly and easily. What’s more, the Venmo application can be accessed easily on any type of connected device, giving you access to your account anywhere, anytime.
The differences
Paypal has owned Venmo since 2013. Discover the differences and uses between these two of the world’s most influential platforms. As you will have realised, Venmo works very differently to Paypal. Venmo is technically part of Paypal, but the uses, targets and objectives of the two platforms are very different. So there are several details you need to know and understand to buy, sell and store your crypto currencies on these two platforms:
How they work
The first major difference is that Paypal is an international online payment gateway. Paypal is very versatile in its uses, it can be a simple transaction for a relative as well as paying a merchant or an online shop. Venmo, on the other hand, is a social finance application on a limited scale for friends and family. It is an application that severely limits the types of transaction, the amounts and the recipients. Their uses therefore differ depending on the customer’s objectives. You could very well use both Venmo and Paypal, depending on the transaction you want to carry out.
Security
The security of your payments is another point of difference between Venmo and Paypal. Paypal secures both buyer and seller data. This works just as well for transactions that are validated as for those that are not. What’s more, Paypal refunds customers who are not satisfied with the products purchased or do not match the seller’s description. The only non-refundable purchases are intangible goods and services. All payments are secure thanks to encryption.
On the other hand, Venmo does not guarantee any protection for the buyer if a transaction is not carried out correctly and a problem occurs. In fact, the user contract states that Venmo is only to be used for transactions with people you trust. The application must therefore be used in a restricted and trustworthy context. Nor can Venmo guarantee any refund or compensation in the event of dissatisfaction with a transaction.
Limits
Both platforms have a threshold that must not be exceeded when making payments. Venmo sets an amount per week that must not be exceeded. These amounts vary according to the type of transaction and the recipients involved. Venmo has therefore set three types of limit:
The total transfer limit per week is $6,999.99.
If you are making a payment to a friend or family member, the maximum amount per week is $4,999.99.
Finally, to pay a merchant the total amount is $6,999.99 per week.
As for Paypal, there is currently no limit on payments. Transaction fees really only depend on the type of currency involved in the transaction.
The fees
Accessing and using these two platforms is free for all users. But of course, transactions automatically incur fees. Once again, there are several differences between Paypal and Venmo. Venmo charges almost immediately for transactions from the application to your bank account. There are two types of fee on Venmo to watch out for when making transactions. The first type of charge totals 3% of the total charge and relates to billing for the use of the bank card. The other type of fee, which accounts for 1% of the total, is for the instantaneousness of the transfer. Paypal, on the other hand, only charges the second type of fee: customers are not charged for using their bankcard.
Withdrawal time
You can choose how long it takes to withdraw your money. For an immediate transfer, both platforms guarantee a 30-minute delay. For a standard transfer, once again Paypal and Venmo differ. Venmo takes between one and three working days. Paypal offers to make the transfer in one working day.
Whether it’s Paypal or Venmo, the entry of crypto currencies on these platforms could be more than beneficial. Both as an introduction for apprentices and to diversify the activities of the two subsidiaries, crypto-currencies will breathe new life into this highly promising market. So depending on your objectives and expectations, you’ll know where to turn to buy, sell and store your coins!
