Venmo
Recently, we have seen an uptick in small business contractors requesting to be paid by Venmo. We had resisted until recently.
With many options to pay for services, we often gravitate to the ones most convenient or comfortable to us. Venmo has not been one we truly embraced until recently. Perhaps it is generational but we have seen quite a heavy usage of this service by sole proprietor contractors. General contractors, painters, cleaners - we have needed them recently and all requested payment via Venmo. The alternative was to have cash available as they just do not trust the veracity of checks, particularly from clients they are experiencing first time.
As mentioned above, we acquiesced. So far, our usage has seen a quick and efficient payment process. However, we remain skeptical of sending large dollar transfers through the system.
Bank sponsored transfers such as Zelle, ACH, and wires almost always have fees. This is especially true for business to business. But they do have the backing of the historic bank system and have been transferring money much longer than Apps like Venmo. All of our contractors currently requesting this payment method are under 40 years of age. Many are in their 20’s or 30’s. Is it generational? Perhaps.
We do not plan on adding Venmo as a payment for our services. However, we will continue to pay smaller amounts for services rendered if the alternative is only cash. Carrying cash or driving to an ATM to withdraw cash is neither convenient nor the safest method to conduct business. Venmo certainly makes it easier than cash.
Be ready to create an account with an email address and bank account or credit card. You need to have access to Apps and be comfortable using Apps and with their risks. So, do your research on the pros and cons.
As we all age, we need to be cognizant of changes in methodology that our business climate is embracing. Change happens, plain and simple. Making sure you are open to these changes is something most of us need to work at, endlessly. Do not be afraid to try new ideas, but be careful and cautionary as some changes are worth researching.
Be well.
