Venmo to Begin Check-Cashing Service as Clients Receive Stimulus Payments
Social-payment application Venmo is entering the check-cashing business with its new Cash a Check feature. The San Jose, Calif., company announced that for select customers it will provide the ability to process printed, payroll and government checks within the app. The announcement was made as eligible citizens within the United States begin to receive their next stimulus checks from the government, some of which are being sent via electronic deposit, while other payments will be made through a paper check.
“We’re always looking for new ways to make it easier for our community to access and manage their money, especially as people continue to experience financial hardships amidst the global pandemic,” Darrell Esch, senior vice president and general manager at Venmo, said. “We know that with health and safety top of mind for many, having a safe way to access stimulus payments is essential for many of our customers, especially those who are receiving paper checks and traditionally would have to visit a physical check-cashing location."
In addition to its acceptance of paper checks, Venmo is helping clients maintain peace of mind through additional considerations that the company hopes will encourage customers to remain home.
“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 but are also waiving all fees for cashing government-issued checks to ensure customers can use their stimulus funds to pay for the things they need most,” Esch explained.
The Venmo Cash a Check feature works similarly to comparable e-deposit services available through many banking and financial institutions. Customers take a picture of the check and submit the image for approval through the app. Venmo explained that the process can take up to five minutes, but in certain, rare cases an approval decision could take up to one hour. Upon approval, the money will be transferred to a customer’s Venmo account.