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Is Venmo Publicly Traded?

Haiden Holmes

Apr 21, 2022 17:18


Every day, people utilize online banks and mobile banking services. People rely on them because they are the most convenient means of accessing and controlling their funds.


So these financial institutions and software programs should be considered when making an investment. 

As a result, we'll go over how to purchase Venmo stock as well as why you should consider investing in this company in the first place.

What is Venmo?

Venmo is an online banking application owned by one of the world's top online payment and money management companies. Venmo's accessibility makes it preferable to the applications offered by traditional brick-and-mortar banks in many respects.

Venmo's fundamental notion is that it is a social spending application. This means you may add friends and interact with them straight inside the app, allowing you to send and receive money amongst your contacts.

Venmo is mostly used to divide the cost of meals or to transfer cash between relatives and friends. There are no money fees between contacts as long as the funds originate from a user's Venmo balance. With the majority of banks charging users for almost every form of transaction, this is the preferable method of sending and receiving money.

Venmo is a mobile payment service that enables registered users to send and receive money using a mobile phone app. Just download it from the app store and enter your basic information, bank account information, email address, and mobile phone number to use the app.


Users may connect their accounts to their bank accounts, debit cards, or credit cards. Paying using a bank account or debit card incurs no extra fees; however, using a credit card with the app incurs a 3% transaction charge. Transactions cannot exceed $299.99 unless the user's identification is validated. However, after your identification has been validated, you may send up to $2,999.99 in transactions in any seven days.

When someone pays you using the app, the app maintains a balance for you. There are two ways to get this money. The first is used when a large sum of money is required quickly. It's called 'Instant Transfer,' and it deposits funds into your account in as little as 30 minutes for a cost of 1% or $10, whichever is less.

The 'Standard Bank Transfer' option deposits fees into your account within 1-3 business days and is money-free.

Pros of Venmo

  • It's simple to transfer and receive money and purchase online.

  • Charges a few fees unless you do specific types of transactions or receive payment in your capacity as a small company owner.

  • Provides dynamic social elements and vibrant emojis to make payments simple and enjoyable.

  • Provides debit and credit cards.

Cons of Venmo

  • Only available in the United States.

  • Weekly spending limit of $6,999.99 for person-to-person transactions, merchant payments, and Venmo Mastercard debit purchases.

  • Not as frequently accepted as other kinds of payment at companies, such as debit cards, credit cards, or cash.

  • Charges a charge of 1.5 percent for quick money transfers to an external bank account or debit card.

  • Privacy settings might be difficult to navigate—transactions may be accessible to other app users.

History of Venmo

Venmo was founded in 2009 to address the issue of friends dividing costs.

The program's initial concept distributed money through text messages but ultimately evolved into the smartphone app accessible today.

In 2010, the company secured $1.2 million in initial money from RRE Ventures.

Braintree purchased the company for $26.2 million in 2012. Finally, in 2013, PayPal purchased Braintree for $800 million, and the company remains a PayPal subsidiary until this day.

Venmo: How Does It Work?

Venmo connects your bank account, debit card, or credit card and then allows you to make payments, send money, and get money back to your external accounts through the app. Along with integrating your external bank and credit card accounts, you may save money in Venmo as part of your Venmo balance to spend or transfer cash.

Additionally, you may enroll in direct deposit to have your paycheck sent directly into your Venmo account up to two days sooner than normal. Your Venmo balance is eligible for FDIC insurance pass-through via Venmo's partner banks, Wells Fargo Bank and The Bancorp Bank, but only if you've purchased bitcoin or deposited money to your Venmo account by direct deposit or remote check capture.


Venmo imposes weekly transaction restrictions on payments made between individuals, payments, and debit card transactions. The weekly limit for person-to-person payments is $4,999.99, the fee for approved merchant payments is $6,999.99, and the fee for Venmo Mastercard debit card transactions is the same. Each week, the cumulative weekly expenditure limit is $6,999.99. For instance, suppose you spend $3,800 a week on person-to-person payments. You'll have $3,199.99 remaining in the rolling weekly period to spend on allowed merchant purchases and Venmo Mastercard debit transactions.

Is Venmo a Secure Payment Method?

Venmo works by establishing a connection between your bank account and/or credit card account and your Venmo account. This is how you send and receive money to and from friends, family, and other app users. Venmo's platform processes transactions between persons sending and receiving money using an application programming interface (API).

According to its website, Venmo secures and protects its customers' personal and financial data using encryption technologies. The company formerly referred to its security procedures as "bank-grade," but that language has been deleted from the website. According to Venmo, user data is held on servers located in safe locations.

Be cautious of frequent Venmo scams, which include someone funding a payment using a stolen credit or debit card or someone falsely contesting a payment after you've transferred the money.

Thus, at first look, Venmo seems to be secure. However, it is not infallible. If someone obtains your PIN or account login information — and you have not enabled multi factor authentication — it is possible for them to use the app to illegally withdraw money from your bank account.

What Are the Benefits of Investing in Venmo Stock?

Venmo as a company has grown from strength to strength, and they show no signs of slowing down. Merchants are increasingly accepting the bank's wireless payment capability.

This means that it's only a matter of time until it's on a par with Apple Pay or even contactless card technology as a payment option.

Venmo benefits from almost limitless resources for development and stability as a PayPal subsidiary. This is not an internet bank that may vanish at any time.

It is a legitimate rival in the financial business and one that many legitimate institutions should fear. Additionally, it is compatible with other online banking systems, such as Chime.

Investing in Venmo stock today gives you a piece of a successful company. The value of that stock is likely to improve in the next few years.

With the outbreak of the coronavirus (COVID-19), internet services such as Venmo have become even more critical to everyday living. The public needs dependable banks that provide safe and user-friendly internet services.

Venmo satisfies these requirements and has been offering a method of wireless payment for years. This is more convenient than chip and pin and more sanitary.

Venmo stock will continue to rise in value for at least the next year as a result of these factors. Even after the epidemic, Venmo will remain the preferred method of payment because of its completely frictionless nature. This is the kind of technology that the general public desires.

Is Venmo publicly traded?

Venmo is not a publicly traded company. However, PayPal's parent company is a publicly traded company. You may invest in PayPal, but your investment will include more than Venmo, as we shall discuss later. PayPal's stock is traded on the Nasdaq under the ticker name PYPL. Shares are widely accessible for purchase via the majority of online brokerage firms, including Ally Invest, Etrade, and Charles Schwab.

When Was Venmo Acquired by PayPal?

Andrew Kortina and Iqram Magdon-Ismail founded Venmo to enable peer-to-peer payments without the usage of cash or checks. Venmo was founded in 2009 and was purchased by Braintree for $26 million in 2012, and PayPal acquired Braintree for $800 million in 2013. PayPal bought Venmo as part of the Braintree agreement since Venmo was a subsidiary of Braintree. PayPal was once a division of eBay but was later split off into its own company.

What is the stock symbol for Venmo?

Venmo is traded on the NASDAQ under the ticker name PYPL. The reason for this is because PayPal owns Braintree in its entirety. You may invest in PayPal but bear in mind who will spread your investment throughout several platforms, not only Venmo.

Venmo has grown in popularity over the years and has established itself as one of the most convenient methods of electronic money transmission.


Due to a variety of factors, these online banking systems are an excellent source for investing since they have evolved to many degrees of convenience.

Purchasing Venmo shares is simple; however, you must hunt for brokers that accept Venmo payments. Through them, you may trade stocks online. Due to the fact that Venmo's parent company is PayPal, the Venmo stock symbol is PYPL, and the Venmo stock price is the PayPal stock price.

Is Venmo Ever Going to Have Its Own Stock?

Venmo becoming its own stock is most likely to occur via a spinoff from PayPal, similar to how who split off PayPal from eBay. Spinoffs are often an effective method of realizing the value of a subsidiary that the parent company is not realizing. However, there is no assurance that this will occur in the near future or at all. PayPal has previously said that PayPal and Venmo coexist nicely under the same roof. According to John Rainey, PayPal's chief financial officer, "there are a lot of synergies from operating both on the same platform."

Venmo is one of PayPal's fastest-growing segments, which the company will likely retain (at least temporarily) as it continues to improve the platform to enable consumers to spend and pay. According to Business of Apps, Venmo will handle $159 billion in payment volume in 2020. When compared to 2018, when $62 billion in payments were handled, it is clear how exponential the rise has been.

Paypal - What Is It?

PayPal Holdings (NASDAQ: PYPL) began as a payments processing company and has now evolved into a variety of other related services and specializations. The company was created in 1998 and went public in 2002 through an initial public offering. However, eBay (EBAY) purchased PayPal shortly afterward and continued to run it as a subsidiary until 2015.

PayPal was split off from eBay in 2015, reestablishing it as an independent publicly traded company; it is currently quoted on the NASDAQ under the ticker code "PYPL." PayPal's headquarters are in San Jose, California, a Silicon Valley powerhouse.

PayPal is well known for its eponymous payment processing service. However, it also operates numerous significant consumer-facing companies. Venmo's mobile wallet and payments section, Xoom's money transfer service, and its Honey rewards platform are among them.

The Business Model of PayPal

PayPal runs a global two-way payments network. Two-sided is critical; PayPal has worked tirelessly to recruit a large number of merchants and consumers to the platform, resulting in a network effect that promotes more transactions. Due to the fact that both sellers and buyers already have their information stored in the system, it simplifies the process of connecting them for future transactions as well.

PayPal's global network operates in over 200 countries and supports over 400 million active accounts. PayPal does integrate with third-party payment networks, including the conventional banking system. However, it also offers exclusive merchant solutions that allow it to make larger profit margins and provide services that are unique to PayPal's platform.

PayPal has various rivals. Block (SQ) is a prominent competitor to Venmo in the digital wallet industry with its Cash App service. PayPal competes in the money transfer market against services such as Western Union (WU) and conventional bank wire transactions. PayPal competes against Square once again in payment processing and merchant acquirers and credit card providers.

Connection Between PayPal and Venmo

Venmo is a money transfer platform that enables quick peer-to-peer payments. Ultimately, Braintree acquired Venmo for around $26.2 million, which PayPal later acquired for over $800 million.

Venmo was included in PayPal's portfolio. This publicly listed company permitted stock purchases using Venmo but under the PayPal stock symbol.

PayPal's platform oversees stock transactions, and for Venmo to become one of PayPal's stocks, it must be spun off from PayPal. Venmo has substantially aided PayPal's development by enabling consumers to transfer and receive money.

Is Now The Time To Buy Paypal Stock?

Covid-19 boosted the growth of the company's shares as a result of the rising demand for online payments. Paypal's third-quarter performance exceeded already lofty forecasts. Additionally, the evaluations indicate that Paypal has attracted new users – those who have never purchased online – and has been used to buy purchases in new categories.

Prior to creating an account, you should research brokers and the exchanges to which they have access. Certain brokerages will not enable an investor to buy stock in a certain company if they do not have access to the underlying stock.

After selecting a broker, create an account. The procedure is straightforward, comparable to that of creating a bank account. Numerous brokers allow this step to be completed online. Perhaps you will be required to provide some supporting documentation, and nothing really complicated.

You must consider the operation's expense. That is because if you deposit the exact amount you plan to invest, the brokerage will buy the fees, preventing you from purchasing your shares. As a result, check the charge amounts prior to initiating the transfer.

The bottom line

Venmo stock is traded under the ticker PYPL, which is identical to the symbol used by PayPal and can be found on the platforms of the majority of stockbrokers and trading systems. Given that you are acquiring PayPal's stock rather than your own, the stock price may be high, but it will almost certainly be beneficial if the company's value continues to rise in the future.


Is Venmo free?

Venmo does not impose yearly or monthly fees or require clients to pay for basic services such as transferring money from a connected bank account, debit card, Venmo balance, and receiving or withdrawing dollars. Consumers will only incur fees if they pay with a credit card (which costs a 3% transaction fee), add to their balance with cash or a check, or choose a rapid bank transfer.

Venmo's policies are different for merchants, with Venmo deducting 1.9 percent and 10 cents from each business sale transaction.

Can you buy cryptocurrencies on Venmo?

Yes, Venmo now allows you to buy virtual money. However, Venmo is not the only exchange where you can buy cryptocurrencies, so before using this service, be careful to compare its capabilities, selection, and price to those of other exchanges.

How much is Venmo worth?

Venmo is affiliated with PayPal. Therefore the value may fluctuate in response to changes in stock prices.

Is Venmo a private or a public company?

Venmo is a public company since all transactions conducted through Venmo are by default public.

How much can you send through Venmo in a day?

Venmo's weekly sending limit is $2999.99. However, you are limited to 30 transactions each day.