Venmo was created in 2009 as a peer-to-peer payments startup. The service began as a way for people to send money to one another using mobile devices and simple digital messages.
Andrew Kortina and Iqram Magdon-Ismail founded Venmo. The idea emerged after they wanted a more convenient way to exchange money and were influenced by mobile and text-based payments. Venmo initially used text messages before developing its smartphone application.
The company became especially popular among younger users splitting bills, paying rent or reimbursing friends. Its social feed, which displayed transaction descriptions without showing payment amounts, became a distinctive part of the product, though it also raised privacy concerns.
Venmo was acquired by Braintree in 2012. PayPal then acquired Braintree later that year, making Venmo part of PayPal. Venmo is therefore often associated with PayPal, but the original startup was founded independently by Kortina and Magdon-Ismail.