Venmo for business guide: Use cases and strategy advice

Over the past decade, Venmo has become a household name for fast, social media payments in the US. With over 90 million active users (and a particularly strong following among Gen Z and millennials), Venmo has grown from a peer-to-peer (P2P) money transfer app to a major player in digital commerce.

Venmo’s appeal among younger consumers and its social payment features make it a compelling choice for ecommerce businesses looking to improve customer experience and drive conversions. In 2023, it was recognized as one of the most well-known digital payment brands in the US, ranking joint second according to Statista. 

For ecommerce leaders—particularly those aiming to capture younger audiences—offering Venmo as a payment method can prove advantageous. This article explores what Venmo is, how it works for businesses, and who should leverage it. We’ll also outline how to integrate Venmo into your payment mix with Checkout.com, so your business can stay ahead in the dynamic world of digital commerce.

What is Venmo?

Venmo is a mobile payment app (available on iOS and Android) and a type of digital wallet that allows US users to send and receive money from friends, family, and businesses. Originally designed for splitting bills or paying roommates back for groceries, Venmo has evolved into a business-friendly payment tool that enables consumers to pay ecommerce merchants easily.

When paying with Venmo, customers can use:

• A linked credit or debit card
• Their Venmo balance
• A bank transfer 

While primarily used on mobile devices, desktop shoppers can also initiate Venmo payments by scanning a QR code or starting the payment process on a mobile app. The ability to add personalized notes and even “split” payments socially makes Venmo distinctly different from traditional payment methods.

To accept Venmo for business, both the merchant and the customer must be located in the US, and the transaction must be made in USD. Venmo’s parent company, PayPal, also enables merchants to add Venmo buttons on product pages, shopping carts, or checkout pages.

Learn more about these options in our mobile payment processing guide.

What are the strategic advantages of using Venmo for business payments?

As consumer preferences shift and digital shopping accelerates, introducing Venmo into your payment portfolio can unlock strategic benefits. 

Appeal to younger generations

According to multiple studies, more than half of Venmo users are millennials or Gen Z—two segments of consumers who tend to be early adopters of new digital payment methods. Enabling Venmo at checkout meets these shoppers where they already transact, which can boost brand loyalty and repeat purchases. One analysis shows Venmo users are 19% more likely to make repeat purchases compared to non-Venmo users.

Boost conversion 

Venmo’s social proof aspects, such as visible transactions in a user’s feed, enhance trust and familiarity with the payment method. With Venmo’s social and familiar interface, shoppers face minimal steps before finalizing payment. This smooth experience can reduce cart abandonment—consumers see a payment method they recognize and trust. According to PayPal’s internal data, 73% of Pay with Venmo traffic leads to a completed purchase, indicating a strong potential impact on conversion rates.

Solidify local payment strategies 

In Checkout.com’s High Performance Payments report, 50% of merchants admitted that failing to properly activate local payment methods in new markets led to significantly lower-than-expected sales within 12 months. While Venmo is only available in the US, it’s effectively a “local” payment method for the American market—essential if you want to capture the younger US demographic.

Social sharing and discovery

Venmo’s social feed allows users to show (at a high level) what or where they made a purchase. While users can keep transactions private, some choose to make them visible to friends—driving organic discovery and offering a subtle marketing channel. This social sharing capability not only builds awareness but also encourages new customers to explore businesses their network has supported.

Which businesses should offer Venmo as a payment method?

Venmo’s demographic skew (younger, tech-savvy, US-based) means certain types of merchants can benefit more than others:

B2C ecommerce stores targeting millennials or Gen Z: From fast fashion brands to online retailers of home décor, Venmo can serve as a convenient and familiar checkout option. 

Food delivery and restaurants offering online ordering or mobile apps: Venmo’s quick payment flow resonates with diners who often split bills.

Event ticketing platforms or digital services popular with younger audiences: These businesses can leverage Venmo’s convenience and encourage group purchases (with an option to split payments later). 

Subscription or membership-based digital services: Particularly for monthly or recurring payments under a certain threshold—where a quick, one-tap payment boosts retention. 

Which businesses should not use Venmo?

Although Venmo is an increasingly popular payment method, it’s not the right fit for every business. Is Venmo for business free? No. Venmo charges a standard fee per transaction (commonly 1.9% + $0.10), among other potential charges for instant transfers. While some merchants find these fees competitive with other payment methods, others may find them less appealing.

What are the disadvantages of Venmo for businesses?

• Fees for receiving money: Unlike personal Venmo accounts (which are largely free for P2P payments), Venmo Business Profile transactions come with fees
• Geographic limitation: Both businesses and customers must be based in the US
• Branding constraints: Limited opportunities for customization beyond Venmo’s standard interface could restrict small businesses looking to build unique brand experiences 

How can you add Venmo as a payment method?

If you already partner with Checkout.com for payment processing, you can add Venmo easily, leveraging our partnership with PayPal. The exact steps depend on your integration method:

1. Confirm eligibility

Ensure both you (the merchant) and your customers are based in the US, and that you’re processing USD transactions.

2. Check your PayPal integration

Venmo is available through PayPal’s “Smart Buttons.” If you’re using PayPal via Checkout.com, you can display a Venmo button alongside other payment types.

3. Enable Venmo in your Checkout.com account

Visit our Venmo documentation for step-by-step guidance. If you’re using Flow, you can enable Venmo with minimal code changes. Flow supports a global network of payment methods in a single integration, making it simpler to expand your payment mix.

4. Testing and go-live

Test your integration in a sandbox environment to ensure all payment flows work properly. Go live and begin accepting Venmo payments from US customers.

How to set up a business Venmo account Venmo allows you to create a Business Profile, which is distinct from your personal profile. You’ll need to provide your business details (legal name, address, etc.), and then link it to your bank account or existing PayPal/Venmo account. This profile unlocks features such as transaction statements and the ability to accept customer payments as a verified business.

What’s the difference between Venmo and Venmo Business?

In essence, a personal Venmo account is designed for peer-to-peer transactions, with minimal or no transaction fees. A Venmo Business profile, however, is specifically for merchant-customer transactions. This means:

• You get access to dedicated business features, such as clear transaction records, a public-facing profile, and the ability to post product listings 
• You pay a transaction fee on each business payment 
• Customers can see your business name rather than your personal handle, making your brand more professional 

What’s the difference between Venmo and Zelle?

Venmo and Zelle are both popular P2P payment apps in the US, but they differ in key ways. Venmo includes a built-in social feed, while Zelle’s interface lacks this social element. Zelle is integrated into many US bank apps, enabling instant bank-to-bank transfers without needing additional apps, while Venmo typically does not have this direct integration. 

In terms of fees, Zelle generally doesn’t charge for P2P transfers, whereas Venmo’s personal transactions can be free, but Venmo for business includes transaction fees. Venmo is more widely used in consumer commerce and online checkouts, thanks to PayPal’s ecosystem, while Zelle is more commonly used for quick, bank-to-bank personal transfers. 

Localize your payment strategy with Checkout.com 

Venmo is just one piece of a broader localized payment puzzle—one that can help your business capture new revenue in the US market. With a unified platform from Checkout.com, you can combine Venmo with a host of other local and global payment methods to meet evolving consumer demands. 

Checkout.com’s analytics tools, fraud prevention capabilities, and global scalability empower merchants to optimize their payment strategies and drive customer satisfaction. 

To learn more about setting up Venmo, visit our Venmo product page and developer documentation.