As stimulus checks make their way to consumers across the United States, Venmo revamps its features to make it easier for users to cash checks from anywhere.
Venmo’s “Cash a Check” feature allows users to quickly cash printed, payroll, or U.S. government checks within its app. The tool is available to U.S. mobile users and launches just in time for consumers to cash their government stimulus checks. Though the feature will include a 1% added fee to cash a check via the app, Venmo has waived that for those cashing their stimulus checks in a bid to boost awareness about the new component. Those cashing any other checks will be subjugated to a 5% check-cashing fee, with checks needing to meet a $5 minimum amount to be authorized.
To get started using the Cash a Check feature, users must have a Venmo Debit Card or a direct deposit linked to their primary bank account. They can then take a picture of their check using Venmo’s camera, which will authorize the amount noted. Once approved, the money will be transferred immediately to a user’s Venmo account, where it can then be housed or transferred to their bank account. The process is similar to the deposit features on traditional banking apps like USAA or Wells Fargo. The Cash a Check feature also follows in the footsteps of Venmo parent company PayPal, which supplies its own check-cashing feature and is likewise waiving stimulus check fees for the time being.
As many consumers face financial hardship and prioritize mobile accessibility during the pandemic, Venmo’s new feature could boost convenience and reliance. Offering faster and easier access to payments and money could also help Venmo level itself against banking competitors and prove its worth to those weary of using a mobile app for money matters, according to a Gartner report. The Cash a Check rollout follows Venmo’s original revamp in 2020 that allowed businesses to create their own profiles and accept consumer payments. As consumers remain homebound but connected virtually, Venmo’s app updates could keep it relevant and top of mind with new and loyal users alike.
Venmo’s timely app refresh could boost usage as consumers look to get their finances in order for the new year. Additionally, the updated feature could help Venmo appeal to a wider audience of mobile users, including tech savvy consumers and those new to virtual banking.