This archive report was first published on 11 July 2019.
Published on July 11, 2019, a report by the Los Angeles Times highlighted a trend among millennials and Gen Zers using Venmo as a crowdfunding platform.
When faced with financial difficulties, some young adults are turning to social media, specifically Twitter, to raise money for essential expenses. They include links to their Venmo accounts, allowing others to contribute to their financial needs.
According to the report, users are seeking to crowdfund a few hundred dollars for various expenses, such as rent, food, medical bills, and even small purchases like a cup of coffee or a trip to the nail salon.
The trend is more prevalent among marginalized groups, including women, people of color, immigrants, and the LGBTQ community.
One college student raised $1,500 after her father was taken into Immigration and Customs Enforcement custody, while another student received $150 for food to cover rent, tuition, and medical bills.
However, Venmo's primary function is to facilitate easy payments among friends, not to serve as a crowdfunding platform. The company has clarified that it is not a peer of fundraising sites like GoFundMe, stating, "We're definitely not a GoFundMe and we certainly don't facilitate charitable payments," a Venmo spokesperson said.
Millennials and Gen Zers' decision to use Venmo for crowdfunding is a symptom of the financial burdens they face, including high living costs, staggering student-loan debt, and the aftermath of the Great Recession.
