Is Venmo actually safe to use?

Splitting dinner and bills with friends is a lot easier in the 21st century thanks to mobile apps that can transfer money at the tap of a button. Venmo, arguably the leading app for shared payments, is a product of PayPal Inc's dive into mobile payments. Started originally as a text messaging service in 2009, the older and more developed Venmo offers peer-to-peer payments via the app (or website.) Since many people (mostly millennials) rarely carry cash in the digital age, Venmo always sits in the top 100 apps on iTunes. There's three ways to pay on your account: Your Venmo balanceA credit/debit cardA U.S. bank account For the unfamiliar, the Venmo process is as streamlined as it can get. After setting up your account with your banking information, you type in the username you wish to send funds to (if your phone contacts have a Venmo, you'll be able to see that,) type the amount, and hit confirm. And just like that, the transfer process begins. However, as simple as it seems, giving a mobile app access to your bank account can send up red flags. But, have no fear. Venmo uses bank-level security and data encryption to protect your information. You can also set up a PIN to lock the app, which will only be unlocked once the correct PIN is entered. Venmo is liable for all losses if your account is compromised -- in which you should alert Venmo immediately. However, it should be stressed that Venmo isn't meant to be used between strangers. As Time reported, Venmo payments are more like checks and less like cash -- payments aren't immediate. So if you sell something to a stranger, you will be notified that they 'paid' the amount, but in the time it transfers from account to account, the scammer could cancel the payment without you even knowing. So, stick with splitting dinner bills with friends rather than selling a couch on Craigslist.

Splitting dinner and bills with friends is a lot easier in the 21st century thanks to mobile apps that can transfer money at the tap of a button.

Venmo, arguably the leading app for shared payments, is a product of PayPal Inc's dive into mobile payments. Started originally as a text messaging service in 2009, the older and more developed Venmo offers peer-to-peer payments via the app (or website.)

Since many people (mostly millennials) rarely carry cash in the digital age, Venmo always sits in the top 100 apps on iTunes.

There's three ways to pay on your account:

Your Venmo balance
A credit/debit card
A U.S. bank account

For the unfamiliar, the Venmo process is as streamlined as it can get. After setting up your account with your banking information, you type in the username you wish to send funds to (if your phone contacts have a Venmo, you'll be able to see that,) type the amount, and hit confirm.

And just like that, the transfer process begins.

However, as simple as it seems, giving a mobile app access to your bank account can send up red flags.

But, have no fear.

Venmo uses bank-level security and data encryption to protect your information. You can also set up a PIN to lock the app, which will only be unlocked once the correct PIN is entered.

Venmo is liable for all losses if your account is compromised -- in which you should alert Venmo immediately.

However, it should be stressed that Venmo isn't meant to be used between strangers.

reported, Venmo payments are more like checks and less like cash -- payments aren't immediate. So if you sell something to a stranger, you will be notified that they 'paid' the amount, but in the time it transfers from account to account, the scammer could cancel the payment without you even knowing.

So, stick with splitting dinner bills with friends rather than selling a couch on Craigslist.

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