Venmo is making it easier for customers to divide shared expenses by introducing a receipt-scanning feature that itemizes purchases and calculates how much each person owes, including tax and tip.

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Announced Monday (Nov. 9), the feature allows users to photograph a receipt or upload an existing image through the Venmo app. The platform automatically identifies and itemizes the purchases, allowing the person who paid to assign individual items to the friends who ordered them. Venmo then calculates each person’s share of tax and tip and generates payment requests.

The feature is integrated directly into Venmo’s existing payment experience. Users can access it by tapping the V on the app’s home screen and selecting “Scan receipt.” Participants can use different mobile devices, and the process does not require switching between applications.

The launch addresses a common friction point in peer-to-peer payments, particularly among younger consumers. Research commissioned by Venmo and conducted by Morning Consult found that 40% of U.S. adults ages 18 to 22 typically pay for group expenses upfront and subsequently collect money from everyone else.

The survey also found that consumers take different approaches to dividing shared expenses. Twenty percent said they typically pay for exactly what they ordered, while 15% divide the total evenly. Another 12% said they alternate who pays or have different people cover portions of the bill, while 11% said one person generally pays and requests reimbursement afterward.

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