New Venmo Updates: Here Is What You Should Know

Check Out Venmo's Latest Updates

by contentwriter
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Author: Kelly Walker

Venmo is a digital wallet and payment gateway that makes it easy to send and receive money from friends, family, and business partners. Students, freelancers, and small-scale business owners can testify to the amazement of Venmo. With Venmo, users can also buy cryptocurrencies on their mobile phones without any external exchange platform. 

Recently, they introduced some features to make sending and receiving money easier and safer. Let’s take a look at these features and how they can benefit you as a Venmo user.

The Gift-Wrapping Feature

Venmo just added this feature to make sending money to friends and family more fascinating. With this feature, users will be able to choose between eight (8) new animated gift-wrap designs for their payment notes. Venmo discovered that around 79% of its users transferred money as gifts, so they added this option to make sending money as gifts via the app more interesting.

How to Use Venmo’s Gift-Wrapping Feature

To use the gift-wrap feature, simply follow the steps below

Step 1: Tap the ‘Pay and Request’ button on the app.

Step 2: Add a recipient to whom you want to send money.

Step 3: Select the animation design you want to send with your payment by tapping the gift-wrap icon.

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Step 4: Preview the animation before you confirm your payment.

Step 5: The receiver is notified of the gift, unwraps the animated design, and gets the money. 

Both the sender and the recipient can view the animation from the payment screen at any time. If this update is not on your Venmo app, you should update your Venmo app. 

Venmo Instant Transfer Pricing update

Venmo has announced changes to its Instant Transfer Pricing for consumers and businesses in the United States. Users with both consumer and business profiles will be charged 1.75 percent of the transfer amount, with a minimum Instant Transfer fee of $0.25 and a maximum of $25. The price change will take effect on May 23, 2022.

Venmo’s Tax Update

The Internal Revenue Service (IRS) issued a policy mandating payment apps like Venmo to report payment transactions for goods and services above $600. The policy implies that if you receive more than $600 in Venmo payments for goods and services, you should fill out a 1099-K Form (tax form for reporting payments for goods and services). Note that this requirement only applies to money received in exchange for goods and services, not money sent between friends and families.

How Does Venmo Identify Goods and Services Payments?

  • Any money sent to users with business profiles is automatically considered as payment for goods and services.
  • Any money transferred or received with a “goods and services” payment tag is also considered to be in this category.

Conclusion

Venmo is one of the country’s most popular gateways for peer-to-peer (P2P) transactions. Venmo continues to demonstrate its commitment to enhancing its users’ overall experience with new features. Users can start using these features to make sending and receiving money more fun, secure, and convenient.

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