In the fast-developing mobile payments space, Venmo is somewhat unique, mixing the ability for friends to send and receive money within a quasi social-media framework.
But security is a big concern for consumers looking at any platform, whether it’s Apple Pay, Samsung’s LoopPay or Google’s Android Pay — all of them relatively new systems going through the growing pains of earning customer loyalty and peace of mind.
Venmo has responded to the growing security concerns in the this arena with “multi-factor authentication.” It simply works by emailing and texting a 6-digit code to users anytime they sign into the service with a new phone.
The company says the new features is meant to “maximize security while continuing to provide a quick and easy sign-in experience on devices you regularly use.”
Venmo has been gaining in popularity, primarily because its easy to use and its newsfeed transforms payments into a sort of mobile social network.
But Venmo learned the hard way about expanding security. Back in February, a Venmo user discovered his Venmo account hacked after someone withdrew nearly $3,000 from his account over the previous 24 hours.
Venmo drew criticism for not having safeguards in place to prevent a third-party from logging in to another user’s account, disable notifications, and withdraw funds. It took the victim over a day to realize someone had made the transaction.
With Venmo’s new feature, a hacker will not be able to use another device to log in — unless they also have access to the victim’s email.
The two-factor authentication is enabled for all Venmo users with the latest version of the app.