Venmo in Australia

Venmo is a subsidiary of PayPal, offering mobile payments to users based in the US. It’s a popular service, especially with millennials, which makes it easy to send money to friends and family.

So, does Venmo work in Australia?

We’ll look at that - and more - in this handy guide. Read on.

What is Venmo?

Venmo lets users pay friends and family using just a phone number or email address. That means you can easily split a restaurant bill, pay for a shared holiday, or contribute to the cost of a joint gift for a friend, using the Venmo app¹.

Over 40 million people use Venmo. It’s convenient compared to making a bank transfer - and it’s also a social way to make payments, allowing you to send messages and emojis at the same time as transferring money.

If you hold a Venmo balance you can use it to cover your payments, or transfer it back to your own bank account for free. If you don’t have any money in your Venmo account, simply use your linked bank account, credit or debit card to pay via the app.

Is Venmo available in Australia?

Venmo is not available in Australia.

To use Venmo you must be physically located in the US, and have a US registered mobile phone number which can send and receive text messages. To make full use of the service you’ll also need a US bank account².

What are some alternatives for Venmo?

As we’ve discovered, Venmo is not an option outside of the US. Don’t worry though - there are other services out there which will work for you.

Let’s take a look at the alternatives to Venmo in Australia.

Beem it

Beem it is an independent company owned by Commonwealth Bank, NAB and Westpac.³ It’s got a lot of the functionality of Venmo, and is a solid choice if you want to send money from one Australian account to another. However, you can’t register for a Beem it account unless you’re an Australian resident, and transactions can’t be made in foreign currencies - so this option won’t work if you need to pay a friend based overseas⁴.

PayPal

If you shop online, chances are you’ve got a PayPal account already. PayPal can also be used to send money to friends and family⁵. It’s worth noting though that they’ll need a PayPal account of their own to access their funds.

It’s free to use if you’re sending money within Australia, and paying using your linked bank account or PayPal balance. However, there are charges for some payments funded by card. International payments are possible but there are steep cross border payment fees and a markup is added to the exchange rate used. Learn more about PayPal international fees, here.

Wise borderless account

The borderless account from Wise is a digital multi-currency account which you can open and operate for free using an app. It’s simple to make payments within Australia, and it’s a perfect option for people who also need to send money to friends and family abroad.

International payments with Wise are made using the mid-market exchange rate with no markups, and for just a low transparent fee. You’ll be able to hold dozens of different currencies in your account and switch between them whenever you need to. You’ll also get a linked borderless debit card for your day to day spending. Borderless transfers are both convenient and cost effective, and the service is registered and regulated like any bank, so you know your money is safe, too.

TorFX

There are many options if you’re looking to make online international payments from Australia. TorFX is one of the most well established out there⁶. To get set up you’ll need to register an account online, and then get a quote for the transfer you need to make. You can do this online or via your account manager. Payments should be received within a day or two, with some more popular currency routes arriving the same day.

If you’re choosing an international payment provider, don’t forget to compare the exchange rate offered with the mid-market rate to check you’re getting a good deal.

The mid-market rate is the best benchmark to use, because it’s usually the rate the payment provider will have received when they bought currency themselves. Some companies - like Wise - choose to pass on the mid-market exchange rate to customers, and charge a transparent fee. However, other companies roll their fee into the exchange rate offered. This allows them to advertise zero commission payments, while still making a profit - but it can also mean you pay more than you need to for your transfer. Compare the rates on offer from different providers, against the mid-market rate, to make sure you get the best price.

Until it’s possible to use Venmo overseas, you’ll need an alternative service when sending money in, to, or from Australia. The good news is that there are many different options available, so you don’t need to go back to the hassle of sending bank transfers. The best one out there for you will depend a little on your needs.

If you’re sending money domestically there are a few services which offer similar functionality to Venmo. However, it’s worth checking out the fees and the fine print to make sure the provider will work for you.

If you ever need to make payments to friends and family abroad, it’s especially important to find a money transfer company which offers a safe and convenient service for a fair fee. Look at both the upfront charges and the exchange rates used before you decide which provider is offering the best overall deal. You might be able to save, with Wise.

Sources:

All sources accurate as of 13 December 2019