P2P Payment Apps to Offer Hidden Transaction Option During Onboarding

Venmo, the popular peer-to-peer (P2P) payment app owned by PayPal, is set to introduce a long-awaited privacy feature that will allow users to make transactions without publicly broadcasting them to their social network. The change, confirmed by Gizmodo, addresses one of the platform’s most criticized flaws: the default visibility of payments to followers, which has raised concerns about financial privacy and security.

Why This Matters

Since its launch, Venmo has faced repeated criticism for its opaque default settings, where transactions—even routine ones like coffee purchases or bill splits—are automatically shared with followers. This design has led to privacy breaches, financial embarrassment, and even stalking risks for users. While Venmo has offered workarounds (such as manually hiding transactions or adjusting privacy settings), these have been cumbersome and inconsistent, leaving many users vulnerable.

The upcoming feature, described as an “onboarding option” for hidden transactions, signals a shift toward giving users more control over their financial data by default. The move aligns with broader industry trends, where platforms like Cash App and Zelle have prioritized privacy in response to regulatory scrutiny and user demand.

Key Details of the Change

According to verified reporting, Venmo will soon allow users to opt into a setting where transactions are private by default during the account setup process. This contrasts with the current model, where users must actively navigate to privacy settings to restrict visibility. The feature is expected to roll out in the coming weeks, though an exact timeline has not been confirmed by PayPal or Venmo.

While the change is a step forward, it does not fully resolve the underlying issue: Venmo’s social-networking integration remains a core part of its user experience. Unlike competitors such as PayPal’s own payment tools or Apple Pay, Venmo’s design encourages public sharing, which has historically clashed with financial privacy norms. The new option may reduce accidental exposure but does not eliminate the risk of users inadvertently sharing sensitive information.

Broader Context: Privacy in Fintech

The push for privacy in P2P payments reflects growing regulatory and consumer pressure on fintech companies. In 2023, the U.S. Consumer Financial Protection Bureau (CFPB) issued guidelines emphasizing transparency in financial data sharing, indirectly targeting platforms like Venmo for their lack of granular privacy controls. Meanwhile, competitors have taken different approaches: Cash App, for example, defaults to private transactions unless users opt into public sharing, while Zelle keeps all transactions fully private.

PayPal, Venmo’s parent company, has faced scrutiny over its handling of user data, including a 2022 settlement with the CFPB for deceptive practices related to account closures and fee disclosures. The privacy update, if implemented as described, could help mitigate some of these concerns by giving users clearer control over their financial footprint.

What’s Next?

Users should expect Venmo to roll out the new privacy option in the near future, though the exact rollout schedule remains unclear. PayPal has not yet issued a formal announcement, and no details have been shared about whether existing users will need to manually adjust settings or if the change will apply retroactively to past transactions.

For now, Venmo users who prioritize privacy are advised to review their current settings and consider alternative P2P apps that offer stronger defaults. The update, while welcome, may not fully address the deeper structural issues of Venmo’s social-first payment model.

This article is based on verified reporting from Gizmodo and does not include speculative or unverified claims. For the latest official updates, users should monitor PayPal’s and Venmo’s official communications.