Nowadays, you’re able to do almost anything with a click of a button from your phone. This includes managing your money as well. There are two very well known services for keeping and transferring money around. PayPal and Venmo are payment apps that will enable you to send or request money electronically from other people.
Read below on how they work and which one is better in the long run.
 |
 |
Venmo 101
When you use Venmo, they are a peer-to-peer app (P2P) that will let you send or get money from friends and family. Just make an account with your phone number to get messages from them. After you’ve opened an account, you’ll be able to connect your bank account, credit or debit card for your source. Then, start sending, saving, or requesting money from other people.
Every Venmo transaction is encrypted for your safety. However, it wouldn’t hurt to be aware of who you’re sending money to and why you are. Venmo is made to transfer money to one another, so if you don’t know the person you’re transferring to, consider a different way to send money. Other ways to send money can be done with a money order or credit card as well.
Plus, you’ll be able to take money out of your Venmo account in several ways. One way is to go to an ATM and withdrawal money with your Venmo card. Or, you’ll be able to transfer it to your personal bank account that’s linked with your Venmo account.
PayPal In a Nutshell
With PayPal, you’ll be able to send money, take payments, or make payments online. It won’t matter if the person is someone you know well or not. Just make an account with a valid email address, this will be your payment ID. Additionally, if you want to send or request money, you must link your credit card or bank account with PayPal to be able to do so.
Even though PayPal owns Venmo, these two services work independently from one another. They both have different objectives and ways of operating. A big difference is if you’re sharing money with someone you know or not. Venmo is mainly for transferring funds from friends and family you know. PayPal will let you transfer money from customers, random people, or friends and family.
However, although they are similar services, you will not be able to send PayPal money to Venmo, and vise versa. You’ll be able to transfer your PayPal money to a bank account that’s linked with Venmo instead. Or you can use your mobile browser and click on PayPal and it will take you to checkout with your Venmo account if the merchant enables it.
Venmo vs PayPal
Both Venmo and PayPal are great financial tools that allows you to transfer money to one another safe and secure. Here are some features they have to offer:
| Feature | Venmo | PayPal |
| Payment/transfer methods | They fund credit and debit card, and bank transfers | Funds credit, debit card, and bank transfers |
| Mobile App | Yes | Yes |
| Availability | U.S. only transactions | Global |
| Fees for sending money with bank transfer or account balance | Free | Free |
| Credit card Transaction Fees | 3% Fee | 2.9% fee with $0.30 per transaction |
| Debit Card Transaction Fees | Free | 2.9% fee with $0.30 per transaction |
| Transaction Limitations | $299.999 weekly transaction limit unless you give more personal information | No weekly transaction limits for verified accounts with simple transactions capped at $10k. |
| Bank Account Transfer Times | Next business day | Next business day |
| ATM Withdrawal Fees | Free MoneyPass network withdrawals and $2.50 out of network withdrawals | Free MoneyPass network withdrawals and $2.50 out of network withdrawals |
| Cash Reload on card | No | Yes |
| Security | Data encryption | Data encryption |
Both PayPal and Venmo have great security measures such as: data encryption, fraud monitoring, and seller and buyer protections. These programs will keep an eye out for scams and other potential security breaches.
Plus, some Venmo members get fraud texts about incoming charges with instructions on how to cancel the fee. They will ten ask for the person to verify personal information. With PayPal, they get similar texts and emails from hackers.
Business
PayPal and Venmo provide customers with business and seller accounts. However, people tend to use PayPal much more than they do Venmo in this prospect. Since it’s available in over 200 countries around the world, while Venmo is only available nationwide. Plus, PayPal will allow you to send and get money as a foreign currency. This is where a small business is able to have a better reach to their users.
Both Venmo and PayPal are quite similar when it comes to their speed in transferring money. They both state that the money will be transferred over by the next business day. Not to mention, both have instant transfers for qualified debit cards or bank accounts. Normally, the money will come in about 30 minutes at most. But, you are required to pay a 1% fee for no more than $10 to receive a faster transaction.
Handling Money
Venmo and PayPal come with features that are almost the same. However, these brands are different when it comes down to their transfer limitations. Typically, if you’re moving a large amount of money in your account, PayPal would be the better option. Venmo comes with a $299.99 weekly transaction limit unless you give them more personal details. PayPal won’t do this, but single transactions can be up to $10,000.
With fees, both brands come close in similarity as well. They don’t charge you an additional fee for getting money from friends and family. Plus, withdrawing from an ATM with your PayPal debit or Venmo card will be $2.50 unless you’re using a MoneyLink network. What makes them different from one another is the debit and credit card transactions. Making transactions with the Venmo card is free, while PayPal will charge $0.30 for each transaction with a 2.9% fee for debit or credit. Venmo will charge a flat-rate fee of 3$ for credit card transfers.
Conclusion
Now, if you want a service that allows you to request and send money to and from friends and family, Venmo is the better option for you. However, if you want more freedom to send or get money from businesses or other people from anywhere in the world, PayPal would suit you better. Whichever app you choose to use, keep in mind to be cautious of who you’re sending money to for safety. Both Venmo and PayPal are excellent money services, no matter what you’re looking for, it makes transferring money much easier.
