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Updated Nov 16, 2023

Venmo for Business: Is It Right for You?

Learn the pros and cons of accepting Venmo in your small business.

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Jennifer Dublino, Senior Writer & Expert on Business Operations
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The popularity of cashless, peer-to-peer (P2P) payment services like PayPal-owned Venmo is growing, making Venmo for Business a payment method small businesses should consider. Today, more baby boomers and Gen Xers are joining millennials and Gen Zers in embracing contactless payment methods. Contactless payments require smartphones, which many people keep in their hands or within easy reach, eliminating the need to fumble with a purse or wallet to retrieve a credit card. Contactless payments also make checkout faster, benefiting both customers and businesses.

If younger people comprise a significant element of your customer base, if you have a new business or want to add additional payment options for your small business, here’s what you need to know about Venmo for Business. 

What is Venmo and how does it work?

Understanding how the core Venmo service works is essential when considering using Venmo for Business.

Venmo is one of the most popular P2P payment services, with more than 78 million subscribers. In simple terms, a P2P service is a digital wallet someone can use to pay another person using a mobile phone app.

If someone is just getting started with Venmo, they’d download the iOS or Android Venmo app; create a personal profile; and link their Venmo account to a bank account, credit card or debit card. They could then start sending and receiving money from other Venmo users.

There’s no cost for using Venmo as a P2P contactless payment solution. However, if you use a credit card to fund the money you’re sending someone, there’s a 3 percent fee. 

Did You Know?Did you know
One of Venmo's unique features is that, in addition to sending money, it makes user payments public via a social media-like newsfeed (unless you opt out). This feature can serve as a form of social media marketing for your business.

What is Venmo for Business?

While teens and millennials sending money to each other make up 82 percent of Venmo’s user base, the next natural step is using Venmo to pay companies for goods or services.

Venmo launched Venmo for Business in 2021, letting small businesses create business profiles that allow them to accept Venmo as a digital payment method. Since then, more than 2 million merchants have signed on to accept Venmo for payments. 

TipBottom line
If you're comparing mobile wallet services, check out our mobile wallet guide, which outlines the differences between Apple Pay, Google Pay and other popular payment apps.

How to get started with Venmo for Business

If you want your small business to offer Venmo as a payment option and accept Venmo payments from customers, you must set up a Venmo account, add a business profile and enter your business information. 

1. Add a business profile to an existing Venmo account.

If you already have a personal Venmo account, open the app, tap your profile icon and tap Settings (gear icon). Select Create Business Profile and follow the prompts.

2. Create a Venmo account and business profile at the same time.

If you don’t already have a personal Venmo account, you can create a Venmo account and a Venmo business profile at the same time. Here’s how:

  1. Download the Venmo app and choose the Business option.
  2. Tap Sign Up.
  3. On the next screen, choose Get Started.
  4. Enter your name and email address.
  5. Create a password.
  6. Tap Agree.
  7. Enter your mobile number and tap Send Code.
  8. Enter the four-digit code you receive from Venmo to verify your phone number and then tap Submit Code.

3. Complete your business profile application and get verified.

The business profile signup process is quick and easy. After completing the above steps, enter the business information Venmo requests:

  • Your employer identification number (EIN) or Social Security number
  • If you use an EIN, whether you are a partnership or corporation
  • A business name to display and a username
  • A short description of your business and business category
  • Business address (this won’t be displayed)
  • Optional public business information, such as a customer-facing business address, phone number and social media profiles

Venmo can usually verify a business name, address and EIN automatically. If not, Venmo will ask you to send verification documentation. 

You should note a few things here: 

  • If you’re not verified automatically, you can start using your business profile, but there will be limitations on your bank account transfers. 
  • You’ll log in to both your personal Venmo account and business profile using your personal account’s credentials. 
  • You can create only one business profile.
  • Venmo and Venmo for Business are currently available only for United States residents with U.S. bank accounts.
Did You Know?Did you know
Unlike credit card processors, Venmo for Business has no approval process, making it an excellent option for startups and very small businesses.

Pros and cons of using Venmo for Business

When deciding if your business should get a Venmo business profile and accept Venmo payments, consider Venmo’s upsides and downsides. 

Venmo for Business pros

Here’s what makes Venmo for Business such an attractive option for small businesses:

  • It has low transaction fees
  • There are no additional fees
  • Setup is quick and easy
  • There’s no need to get approved 
  • No credit check is required
  • New businesses can get started right away
  • Venmo is the most popular P2P app
  • You can quickly transfer funds to a bank account
  • It’s available on Apple, Android and other mobile platforms
  • It allows for payments on the go
  • The social feed gives your business free marketing
  • It enables contactless payments

What are Venmo’s cons?

Venmo isn’t for everyone. Here are some downsides to consider:

  • It’s not widely used among people over age 35
  • You may miss out on sales from credit card users
  • Transfer limits make it unsuitable for high-volume businesses
  • It does not include tax calculations
  • You can’t set up more than one business
  • Funds mix in a single Venmo account, so it demands more accounting attention
  • It’s limited to one person, with no option for co-owners
FYIDid you know
It's essential to protect your company when taking online payments of any form because a security incident could cost you time and money and damage your reputation.

Who is the ideal Venmo for Business company?

If you’re a sole proprietor, freelancer, independent contractor or another type of small business, Venmo for Business is likely an excellent choice for a P2P payment method. Similarly, if your business sells to young, tech-savvy people in the 16-to-35 age demographic, Venmo is a natural, easy payment option to offer. 

If you are just starting a business and haven’t set up credit card processing yet, Venmo for Business is an excellent option. And if your business already accepts credit cards and other payment options, Venmo for Business may be a welcome addition to your accepted payment methods. 

Venmo FAQs

After you've set up a Venmo business profile, you can start accepting payments for goods and services. Your customer must have a personal Venmo account. If another business wants to pay you, it will need a Venmo business profile. If you want to pay another business, that business will also need a Venmo business profile. You can accept Venmo payments from customers via the Venmo app, on your website or in person with a quick response (QR) code. Customers can also use a Venmo debit or credit card to pay a business:
  • Paying via the Venmo app: If a customer pays you via the Venmo app, they'll select your business, input the transaction amount and tap Send. If necessary, they can use Venmo's search function to find your business, tapping the Business category (as opposed to People) to ensure they're searching businesses.
  • Paying via your business website or mobile app: Customers can also use Venmo on your business website or mobile app if they make an online purchase and you've set up Venmo as a payment option. In this case, they'll log in to their Venmo account when completing the purchase. To use Venmo as a payment option on your website or app, you must integrate a Pay With Venmo button via a payment platform like Braintree or PayPal. You must set up an account with whatever payment platform you choose; you'll likely need a web developer to integrate the payment button into your website or app.
  • Paying in person with a QR code: It's easy to accept customer payments in person by having them scan your Venmo business profile QR code. Customers can scan the code from your smartphone or tablet screen or you can opt to print out the code. Venmo offers business customers a QR kit to make it easier to accept QR code payments. Venmo's $14.99 QR kit includes five stickers, a laminated wallet card with a lanyard and a plastic tabletop display with a stand (2 x 4 x 6 inches). After Venmo activates your QR kit, customers can scan the code to be taken directly to your Venmo business profile.
After the transaction, the money is transferred from the customer's Venmo account to your Venmo account using the customer's Venmo balance or linked funding source. When there's money sitting in your Venmo account, you can use it to make payments with Venmo or transfer the balance to your linked bank account. There is no cost to do this unless you request an instant transfer, which transfers funds within 30 minutes. There is a 1.75 percent fee for an instant transfer. In Venmo, you can link only one bank account to receive money. You can't funnel personal payments into your personal checking account and business payments into your business accounts. However, you do have the option to transfer funds between your personal Venmo account and your business Venmo account. You can keep track of your business's Venmo sales for small business accounting and tax purposes by looking at a listing of business transactions in your business profile.
Just like credit cards, Venmo charges a fee every time a business transaction is made. For payments made using the Venmo app and a QR code, the fee is 1.9 percent of the total amount plus 10 cents for each transaction made to your business profile. For payments that are contactless but not from a Venmo account, the fee is 2.29 percent plus 10 cents per transaction. The minimum fee per transaction is $1. Venmo deducts any applicable fees before your money arrives in your bank account. Here are some examples for a purchase made from a Venmo account:
  • $100 purchase: $100 x 1.9 percent = $1.90 + 10 cents = $2 fee
  • $40 purchase: $40 x 1.9 percent = $0.76 + 10 cents = 86 cents, rounded up to the minimum $1 fee
Here are some examples for a contactless purchase not using the customer's Venmo account:
  • $100 purchase: $100 x 2.29 percent = $2.29 + 10 cents = $2.39 fee
  • $10 purchase: $10 x 2.29 percent = 30 cents + 10 cents = 40 cents, rounded up to the minimum $1 fee
There are vast differences between payment processors. Check out our reviews of the best credit card processing services to compare fees and features. Venmo Business transaction limits and bank transfer limits The maximum transaction amount for a Venmo payment is $999.99. Users also have a total weekly spending limit to Venmo-authorized merchants of $4,999.99 if they verify their accounts. Unverified accounts have a weekly spending limit of $299.99. For merchants, there is a weekly cap on the amount you can transfer from your business Venmo account to your linked bank account. If your identity has not yet been confirmed, the limit is $999.99 per week; if your identity is confirmed, the limit increases to $19,999.99 per week but in chunks of no more than $2,999.99 for each transfer.
Venmo is only one option for accepting customer payments. Other digital wallets exist that work like Venmo; there are also payment aggregators like PayPal and traditional credit card processors. PayPal owns Venmo, so when you use PayPal for credit card payment processing, you can still accept Venmo and PayPal as well as Apple Pay and Google Pay. If you're deciding between Venmo and a credit card processor, note that Venmo's transaction fees are significantly lower and Venmo charges no monthly or other fees. Meanwhile, many more people have credit cards than Venmo accounts. If you accept only Venmo and not credit cards, you'll probably lose sales. However, if your market consists primarily of teens and millennials, this may not be that big of a problem since Venmo use is ubiquitous in those demographics. Your business can accept credit card payments with PayPal, but you'll need to get a PayPal Business account, download the PayPal Zettle app and get a PayPal card reader.

Venmo vs. P2P payment options

Here’s a look at how Venmo compares to other P2P options:

Payment service

Credit transaction fee

Bank transfer limits

Fund transfer speed

What you should know

Venmo

1.9 to 2.29 percent + 10 cents per transaction

$19,999.99 per week

Around 1 business day

Most widely used P2P

Google Pay

Up to 4 percent

$5,000 per week

1-3 business days

Can integrate with a POS system and credit card processors

Apple Pay

3 percent

$10,000 per week

1-3 business days

Already installed on iPhones, but available to Apple users only

Cash App

3 percent

$7,500 per week

1-2 business days

Can receive payments over Bluetooth

PayPal

2.9 percent + 30 cents

Up to $60,000 per transfer

1-3 business days

Can also accept credit cards

author image
Jennifer Dublino, Senior Writer & Expert on Business Operations
Jennifer Dublino is an experienced entrepreneur and astute marketing strategist. With over three decades of industry experience, she has been a guiding force for many businesses, offering invaluable expertise in market research, strategic planning, budget allocation, lead generation and beyond. Earlier in her career, Dublino established, nurtured and successfully sold her own marketing firm. Dublino, who has a bachelor's degree in business administration and an MBA in marketing and finance, also served as the chief operating officer of the Scent Marketing Institute, showcasing her ability to navigate diverse sectors within the marketing landscape. Over the years, Dublino has amassed a comprehensive understanding of business operations across a wide array of areas, ranging from credit card processing to compensation management. Her insights and expertise have earned her recognition, with her contributions quoted in reputable publications such as Reuters, Adweek, AdAge and others.
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