Venmo, now lets you pay folks nearby

OK what is Venmo?  Well its a new one on me too, its a payment app to help pay people in your contacts list.  Now it lets you pay folks that are nearby (my security senses are tingling here).  The app sounds interesting, but I am leery of it as well.

http://techcrunch.com/2014/02/19/venmo-now-lets-you-find-and-pay-other-nearby-venmo-users/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29