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Remember the days when cash was king? Many people these days keep very little cash on hand. Plastic and digital payments are popular for everything from buying groceries to paying a friend back. Venmo is one of the most common payment apps. If Venmo sounds intimidating to you, check out this guide.

What Is Venmo?

Venmo is a peer-to-peer payment app. It's essentially the middleman for transferring money from one person to another. You connect your bank account or credit card to your Venmo account. When you owe someone money, you can send it from your Venmo account to theirs, and the money goes into their Venmo balance. They can either leave it there to use for future transactions or transfer it to their bank account.

Venmo comes in handy when you owe a friend money — maybe they covered your meal at a restaurant last week so you're paying them back. You might want to make a donation to your grandchild's travel soccer team. You can send your donation through Venmo to get the money to them instantly. Some merchants also accept Venmo as a payment method. It allows you to pay for your purchase without pulling out cash or cards.

Do You Need Venmo?

Venmo is more of a convenience than a necessity. If you need to send money to someone else, you can do it in other ways. You can give them cash, write a check or transfer it from your bank account. Most merchants accept multiple payment methods, so Venmo isn't required to shop at your favorite stores. It can make the process faster and easier, though, which is why many people choose to use the platform.

Benefits of Using Venmo

If you're on the fence about using Venmo, here are some benefits to consider.

• Fast payments: When you want to get money to someone quickly, Venmo helps you with that. You can send and receive money right away. This can be especially helpful if you're sending money to someone who lives far away.
• Flexibility: You can leave your money in your Venmo account to use later or move it to your bank account.
• No fees for basic services: Venmo doesn't charge fees to use the service. If you want to transfer your money to your bank account instantly, there's a small charge. You can transfer for free, with the money typically arriving in 1 to 3 days.
• Debit and credit cards: Venmo also offers debit and credit cards. The debit card links to your Venmo balance, so you can spend the money easily without transferring it to your bank.

How to Use Venmo

Getting started with Venmo is relatively easy. The app is straightforward to use. Follow these steps to get started:

1. Download the Venmo app for your smartphone.
2. Open the app.
3. Enter your personal information to set up a Venmo account.
4. Verify the information.
5. Connect your bank account information to your Venmo account.

Tips for Using Venmo Safely

While Venmo offers a fast, convenient way to pay other people, it also comes with some risks. Your account can get hacked, and fraud is also possible. Venmo and other peer-to-peer payment platforms often don't give you protections if your money gets sent to the wrong person. You can improve the safety of your Venmo account with these tips.

• Create a secure password: Like all your online accounts, your Venmo account needs a secure password. This reduces the risk of someone hacking into your account and sending themselves money from your bank account.
• Use two-factor authentication: You can enable two-factor authentication in your Venmo app for added security. When someone logs into your Venmo account from a new device, it sends you a text with a code to verify it.
• Only send money to people you know: Once you send a payment, you usually can't cancel it, so limit your Venmo transactions to people you know and trust.
• Verify their information: Make sure you have the person's Venmo information correct to ensure you send the money to the right person. Check what you enter against the info they give you.
• Be wary of requests: If you receive a request for money on Venmo, always be wary, even if it looks like it's from someone you know. Call the person to make sure they actually requested the money, especially if you're not expecting to send them money.
• Check your account often: Log into your Venmo account regularly to look for any suspicious activity. Check your bank account or credit card statement to look for any unauthorized transactions.
• Allow notifications: Turn on the notifications from the settings of your Venmo account. Whenever a payment is sent from your account, you'll receive a notification. This can help you spot a fraudulent charge right away. You can then take steps to secure your account.
• Make your transactions private: Venmo has a default setting that makes all your transactions public. Anyone can see your completed transactions. You can go into your settings to the privacy category to make your transactions so only friends can see them or so they're private and no one can see them.

Your Venmo account can make payments easier when you take safety precautions to make it secure.