FinTech News
Varo Bank Introduces “Varo to Anyone” Payment Feature
FinTech-turned-bank Varo has unveiled a new feature that gives customers another option for sending money to friends and family.
About the feature:
Varo Bank has announced the launch of its new Varo to Anyone feature. As the name implies, this addition will allow users to send money to anyone who has a debit card. This feature replaces Varo to Varo, which was limited to those who already had an account with the bank. Varo to Anyone is also the latest payment option to join the app following the addition of Zelle last year.
To send money using Varo to Anyone, users will need to provide the recipient’s phone number or email address. From there, the user receiving the payment can add their debit card information in order to complete the transfer. Varo users can find the new feature by tapping the “Move Money” tab in the app.
About Varo:
Originally known as Varo Money, Varo was awarded a national bank charter in 2020 — making them the first consumer FinTech to do so. Since then, the company has gone by the name Varo Bank.
One of the key features of Varo Bank is that customers can earn up to 5% APY with a direct deposit of at least $1,000 per month. In 2021, Varo also launched its Believe card, which helps customers build credit. Other features include Varo Advance (which allows customers to borrow up to $100 for a fee of $5 or less), fee-free ATM access via the Allpoint network, the ability to earn cashback on debit card purchases at select retailers, and more.
What they’re saying:
Announcing the new feature, Varo Bank CEO Colin Walsh said, “Shortly following the successful launch of Zelle, Varo is continuing its investment and innovation in payments with Varo to Anyone. We are providing the ultimate instant money flexibility, with no fee structure and the security only a bank provides.” Walsh continued, “Varo to Anyone’s three-month development cycle and no-fee basis truly demonstrates Varo’s bank charter with FDIC insurance in action.”
My thoughts:
As ubiquitous as peer-to-peer payment options are these days, the ability to send money to anyone without worrying about what platform they have can be helpful. Thus, this Varo to Anyone feature could be a win for consumers — while also giving Varo free promotion when non-users receive payments. It’s also great to see that Varo hasn’t grown complacent since becoming a full-fledged bank and continues to add features. On that note, it likely won’t be long before we hear more from Varo Bank.
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