Some good news for the millions of small businesses using PayPal: Starting soon, customers will be able to make PayPal payments through Venmo. This means customer payments through PayPal are about to get much, much easier.
PayPal payment through Venmo will be enabled this May and June. You need to do nothing to your PayPal or Venmo seller accounts; everything is shifting automatically.
According to PayPal, users will be able to make PayPal payments directly through their Venmo apps if they log into the new program.
Venmo Small Business Tip: Integrating PayPal
Integration between Venmo and PayPal (PayPal owns Venmo) is automatic. If you run a small business that accepts payments through PayPal, you don’t have to do a thing.
Transactions are seamless, and covered by PayPal’s seller protection policy. PayPal seller protection Policy will apply to Venmo-funded transactions received through your PayPal account.
You’ll still automatically receive your customer’s shipping address, too.
There’s one small difference for buyers, though. Buyers paying for PayPal through Venmo won’t be covered by PayPal buyer protection, but by Venmo buyer protection. The legalese for Venmo is somewhat different than PayPal’s.
Any buyer/seller disputes for PayPal payments made through Venmo still go through the PayPal Resolution Center, and the chargeback/dispute process remains largely the same. Venmo payment returns are also handled identically to PayPal payments.
Venmo Small Business Tip: What’s Venmo Anyway?
Venmo has millions of users, and is based around a social feed which lets users (if they choose to!) show what they’re spending money on, and who they’re getting money from.
Venmo accounts are quickly refilled through bank accounts, and quickly transfer money to bank accounts. You can also send instant payments to friends, family, coworkers, and clients by sending money to their phone number or email address.
Venmo Small Business Tip: Why Venmo Matters
There’s one big difference between Venmo and PayPal. Venmo is a social payments service, which means users can share their transactions with friends in their Venmo feed.
For small businesses, this means lots of new marketing opportunities.
If Venmo users posted that they bought something from, say, your Etsy store or your online ecommerce portal, that means you can advertise yourself to your buyer’s entire Venmo network.
PayPal says that Venmo have the option of sharing their purchases in their Venmo social feed, which includes purchases made on seller’s sites. However, purchase prices aren’t included in Venmo users’ social posts.
Venmo also has another benefit: Opening your business up to new audiences. Venmo’s users are mostly millennial, skew younger than PayPal’s, and many of them just have Venmo accounts–they don’t even use PayPal! Accepting Venmo payments opens your business up to a whole new customer base.
(Image via Venmo)