Venmo announced this morning that it would begin offering a new check cashing service, “Cash a Check,” in the Venmo mobile app. The company says that starting today, select users can use cash in print, payroll and US government checks. While there will usually be fees associated with the Cash with a Check feature, Venmo says they are being waived for a limited time on incentives.
To be eligible to use Cash A Check, Venmo customers must have a Direct Deposit or Venmo Debit Card enabled on their account, location services turned on and a verified email address.
Customers who gain access to this facility will be able to take a picture of their endorsed check and send it to the Venmo app for review, such as if they want to cash the check in the mobile banking app. The check will be reviewed in a few seconds, although under special circumstances, the review may take several minutes or up to an hour before approval is decided.
If approved, the money will be immediately transferred to the customer’s Venmo account.
Venmo will temporarily waive the fee on incentive checks coming in now and a few weeks, but will eventually apply to any government or cash payment with a minimum fee of $ 5.00 with pre-printed signature in the app. According to PayPal’s terms, other checks, including hand-signed payroll and government checks, will have a 5% check cashing fee or $ 5.00 minimum.
At the time of launch, cash is provided by a check service partners First Century Bank, NA and Ingo Money, Inc. Inogo Money already offers a similar feature to Venpo parent company, PayPal, allowing users to check for cash in the PayPal app.
Darrell Esch, Venmo SVP and GM said in a statement, “We are always looking for new ways for our community to access and manage their money, especially people facing financial difficulties. ” New service.
“We know that for many people with health and safety on top, a secure way to use stimulus payments is essential for many of our customers, especially those who are receiving paper checks and traditionally a physical Check-cashing has to go, “she said.” By introducing the Venmo Cash a Check feature, we are not only enabling our customers to access their money quickly and safely from the comfort of their own homes, Rather waiving all fees for cashing checks issued by the government to ensure that customers can use their incentives, he said, to pay for the things they need most.
However, the company’s move to check cashing does not make the peer-to-peer payment app an option for online banking. Rather, it largely serves as an incentive for Venmo to benefit from the influx of incentive payments now underway for its American users.
Fintech companies are scrambling to prove their worth to customers by providing fast and easy access to incentive payments. For example, banking startups like Current and Chaim started sending payments to customers ahead of other traditional banking institutions.
In addition, the incentive money can help boost Venmo’s bottom line, just the fee for it. As Venmo users gain access to their incentive payments or payroll in the app, they can then use that money with online merchants or with their Venmo debit card. This transaction allows Venmo to make money through transaction fees, as well.
Venmo said the feature is now rolling out to mobile app users on iOS and Android. The company recommends that users download the latest version of the app on their mobile device for best performance and update to the latest operating system.