COD: With Venmo, lending money to friends may no longer be a bad idea

We've all heard the adages related to financial relationships between friends. But Venmo is out to change the CW on friend to friend financial exchanges with a mobile app that lets to text and receive real money payments with your BFFs.

This Philadelphia-based start up connects friends (and businesses) by enabling pay by text. You simply download the iPhone or Android app and link a credit card to your account, Voila, you are ready to go. If you don't use one of these platforms, you can also join by sending the company a text message.

Here's a brief interview with one of the founders:



So why is the world aching for this application? Well, think about all the times when money comes between you and your friends. Splitting restaurant checks. Lending small sums, getting paid back, and even making small surprise gifts to lift spirits.

With Venmo, you and your friends get to avoid the $3 gypsy ATM fees (and the $3 your bank probably charges you on top of that) just by doing something you already do multiple times a day -- text.

I'll wager that transactions between buds are a prime reason for the demise of friendships. When you rely on memory or that over time "it'll all work out," there is always the risk that someone -- or even both parties -- will feel like they got the short end of the stick. Venmo makes all that would be angst and resentment disappear.

You can even include memos to help you communicate and remember what you were paying or being paid for.

The company charges nothing zip nada for transactions between friends. They make their money through transaction fees they charge local businesses that join the program so they can accept payments via text.

Hey, sooner or later we'll probably be paying for everything with our phones. Venmo can get you started with those frequent transactions between friends.