Smiling young woman using smartphone while having brunch in an outdoor restaurant surrounded by foliage and beautiful sunlight.
Small businesses may be able to use Venmo Business, a commercial version of the popular peer-to-peer money transfer app that allows you to accept payments from customers. — Getty Images/d3sign

Venmo is a popular peer-to-peer (P2P) money transfer app that many people use to split bills and send cash to friends and family. Small businesses may be able to use Venmo Business, a commercial version of the app that allows you to accept payments from customers. Here’s what you need to know about Venmo Business and whether it’s right for your company.

What is Venmo Business?

Venmo Business officially launched in 2021, giving small business owners a new way to accept payments. With this option, merchants can take advantage of Venmo’s instant payments and build a social presence. Venmo Business comes with several ways to market your services and reach new customers, including a profile picture on your business profile and a link to your website.

Getting started with Venmo Business is relatively easy. Apply for a Venmo Business profile first through the app or on Venmo’s website. Once you’re approved, you can begin accepting payments virtually via the Venmo app or in-store using a Venmo QR code.

Venmo is owned by PayPal Inc., making it easy to add Venmo Business to your online store too. When a customer selects “PayPal Checkout” as their payment option, they will see an option to “pay with PayPal or pay with Venmo.” They can then choose to pay using their Venmo account and will receive a Venmo-branded receipt.

[Read more: How to Accept P2P Payments at Your Small Business]

Venmo reports that it has more than 83 million customers.

What are the advantages of Venmo Business?

Venmo is another form of contactless payment, meaning it’s fast and easy for customers to use at checkout.

“The biggest draw for both customers and businesses is how quickly users can transfer money to their banks. The business version of Venmo provides instant transfers, allowing companies to receive money and issue payments on the same day,” wrote Business News Daily.

Many customers already use Venmo for their personal money management: Venmo reports that it has more than 83 million customers. Businesses can tap into a potential group of new customers without spending a ton on marketing. Allowing customers’ purchases to appear in their feeds is a simple and easy way to broadcast each time you make a sale.

[Read more: Choosing the Right Payment Methods to Accept at Your E-Commerce Business]

It’s worth noting that Venmo Business does charge transaction fees. Here’s what you can expect to pay in fees:

  • 1.9% plus 10 cents per transaction for purchases made using the Venmo app and a QR code, and
  • 3.49% plus 49 cents per transaction for purchases made online or in-app using the Braintree gateway or PayPal Checkout.

This is comparably low for in-person transactions but very high for online payments. While Venmo doesn’t charge transaction fees on P2P payments, its terms and conditions do not allow businesses to accept payments on personal profiles.

Who should use Venmo Business?

Venmo Business is available to merchants across all categories, but it might be best for service professionals and sole proprietors. It enables small businesses to accept mobile payments without additional hardware. Customers can simply scan a QR code or log into the app to make payments. But for companies that manage sales across multiple locations, the logistics can get tricky.

“Business and personal accounts share a login. You’ll use the same login for both your personal and business Venmo account,” wrote Credit Karma. “This makes it easy to toggle between the two accounts, but it could get confusing.”

There are also limits on how much money you can send, receive, or transfer to your bank account. Purchases have the following limits:

  • $24,999.99 per week ($2,499.99 without identity verification)
  • $2,999.99 per single transaction

And transfers to your bank account have the following limits:

  • Up to $49,999.99 per week ($999.99 without identity verification)
  • Up to $50,000 for instant transfers per transaction

Venmo Business is a great way to start accepting contactless payments and elevate your business profile to new customers.

CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.

CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here.

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