Fans Using Venmo to Thank Sports Players and Celebrities Puts the Startup in a Tricky Spot

Venmo users have started to use the payments app to show their appreciation to sports stars or celebrities; in most cases a fan sends a few cents or a few dollars, the practice has helped Venmo increase their user base but can also put them in a precarious position; sports players receiving money for performance can be considered gambling, which is illegal in most states; sending some money to celebrities can open up the platform for fraud as they might not always be sending to a real person but an imposter; this has become a byproduct of how the startup was founded as the social aspect is core to what Venmo does. Source.

  • Todd Anderson

    Todd is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists. He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences. He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.