Venmo is a service that provides a fun & easy way for you to charge and pay your friends and bypass the need for cash or checks. Many situations can all be made easier by using Venmo:
- Splitting a lunch bill
- Paying your friend half of a cab fare
- Sending your roommate your half of the rent
- Sending a friend money for a birthday drink
The best way to think about Venmo is as a digital replacement for your wallet. To explain what that means, let's take a tour of the Venmo features that make it work like a wallet.
You can think of your Venmo balance like cash in your wallet that your friends have paid you. Any money living in your Venmo balance can be used immediately to pay other users in Venmo, and can be sent (cashed out) to your bank account. A more detailed explanation of how your Venmo balance works can be found in one of our help articles.
When setting up your Venmo account, one of the first things you do is decide how you want to pay people, also known as setting your funding source. In Venmo, you can pay people from any of the following:
- Your Venmo balance
- A credit/debit card (imagine being able to pay a friend directly from your credit card)
- A U.S. bank account (think of it like paying someone with a check, but they get the money right away and we handle the check cashing for them)
At its core, Venmo provides a social way to pay your friends when you owe them money and don't want to deal with cash. Sending and requesting money to & from your friends is simple in Venmo, and you can even send money to people who don't have Venmo accounts yet by simply paying their phone number or email address (they'll just sign up to accept your payment). More info on how to pay & charge people in Venmo can be found in our help articles.
If you have money in your Venmo balance, you can leave it there forever and use it to pay your friends. However, if you need some of the money in your balance sent to your bank account, you can cash out. Cashing out is simple once you add a bank account (savings or checking) to your Venmo account. Cashouts usually take 1 business day to reach your bank account, but you can learn more about cashout timelines in our help article