When software developer Andrew Kortina was living in New York, friend and former University of Pennsylvania roommate Iqram Magdon-Ismail often visited him. But when Magdon-Ismail forgot his wallet one weekend, he borrowed a few bucks from Kortina. Magdon-Ismail promptly repaid using a check but with normal banking delays, it took Kortina a week to get his money back. That's when the pair decided there had to be a better way.
They created
Venmo, a bill-pay service where users can link a credit card or bank account to make instant payments to friends from the comfort of their mobile device. The service is free and, Kortina says, it will remain free. The company will charge merchants--like several coffee shops in Philadelphia and restaurants in New York--to accept the service. Founded in 2009, Venmo has already put its founders in
Inc. Magazine's 30 Under 30. But its creators admit it's still a work in progress, adding features and refining the platform for iPhone and Android markets. The company looks to add three
new positions in the next six months to help make Venmo a household name.
"We are always looking to make the site work better," says Kortina. "Any time we meet someone who is really smart and excited about Venmo, we want to hire them."
More than just a bill-pay service, Kortina and Magdon-Ismail see Venmo as a social network; a way to show friends where you have been and what you've been up to. By targeting merchants instead of consumers, Venmo hopes to increase publicity both for their service and for the merchants who use it through Facebook and Twitter connectivity. Forgetting your wallet has never been so much fun.
"We encourage users to make their payments public," says Kortina. "Most of the time, when you are exchanging money with a friend, you are doing something fun like going to a bar or restaurant, going on a ski trip, going to a baseball game, usually something your friends might want to know about."
Source: Andrew Kortina, Venmo
Writer: John Steele