If you’re looking for a convenient way to send or request money from your mobile device, these digital wallet apps — Venmo vs PayPal– are two of the most popular platforms for moving money around. Both of these payment systems let you electronically send and receive funds.
Be sure to keep reading to learn more about how Venmo vs PayPal work, what the difference is, and which one might be better for you.
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What is Venmo and How Does It Work?
Venmo is an app that lets you send and receive money from friends. To start, simply set up an account by using a phone number that receives texts. After that, you must link your account to a bank account, credit card, or debit card as your funding source. Once that is done, you can send or request money from friends using your account that you linked or from your Venmo balance.
Is Venmo Safe to Use?
All Venmo transactions are encrypted for security, however make sure that you are cautious about who you’re sending your money to and how much you send. Venmo is designed to send and receive money from friends, so if you don’t know the person on the other end too well, consider opting for a different method of payment such as a money order or credit card.
How Do I get My Money Out of Venmo?
If you want to get your money out of Venmo, there are a couple ways to do so:
- ATM withdrawal using the Venmo card
- Bank transfer to one of your linked accounts
What is PayPal?
PayPal lets you send money, accept payments and make payments online, regardless of whether the party is a personal friend or not. You can set up an account using your email address, which will serve as your payment ID. Additionally, you will need to register a credit card or bank account in order to make payments or send money.
What is the Difference Between Venmo and PayPal?
PayPal owns Venmo, however the two payment services operate independently and have different missions. The main difference between the two is whether or not you’re sharing money with someone you know or not. Venmo is designed to send and receive money between friends. On the other hand, PayPal allows you to receive payments from customers, pay for goods or services, and send and receive money from people you know.
Venmo vs. PayPal Characteristics
Security
Both companies have strong security features, which include:
- Data encryption
- Fraud monitoring
- Seller and buyer protections
However, you should still always be cautious and lookout for scams.
Business/Acceptance
Both companies offer users business and seller accounts, but PayPal is much more widely accepted than Venmo. PayPal is accepted in more than 200 countries worldwide while Venmo is only available for U.S. transactions. PayPal also lets you send and accept foreign currencies, which gives small businesses the chance to expand their customer reach.
Transfer Limits
Although they have similar features, the two companies differ when it comes to transfer limits. PayPal might be your best choice if the amount of money that moves through your account is a big factor. Venmo has a $299.99 weekly transaction limit unless you provide further personal information. Verified PayPal account holders have no such transaction limits, although single transactions might be capped at $10,000.
Fees
Neither platform charges a fee for receiving money from friends and family. ATM withdrawals using your PayPal debit card or Venmo card are both $2.50 unless you use the free MoneyLink network cash machines. There’s no charge for sending money using your PayPal or Venmo balance or a bank transfer.
The difference lies in your debit or credit card transactions. Venmo debit card transactions are free. Paypal charges $0.30 per transaction plus a 2.9% fee for debit and credit card transactions. Venmo charges a flat-rate fee of 3% for credit card transactions.
Author’s Verdict
Hopefully you’ve learned the difference between Venmo vs PayPal and which one is better for you. If you want a simple service that lets you send and receive cash between family and friends every so often, go with Venmo. On the other hand, PayPal has more flexibility and can send and receive money from businesses and individuals, regardless if you know them or not.
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