With the evolution of the Internet and smartphones, it has become easy to send or receive money. So many different digital banking payment apps are available these days. Today we will be discussing two such payment apps: Paypal and Venmo. Have you ever heard your friend or family members saying “PayPal me” or Venmo me”? Both digital payment apps support different features.
PayPal and Venmo serve different needs leading to different kind of transactions like P2P or B2C business models. PayPal and Venmo apps have an added feature of verification. Once the customer has done online verification; they are allowed to make big amount transactions. Otherwise, the transaction limit is capped at $299.99.
Features of Paypal App and Venmo App
| Features of PayPal app | Features of Venmo app |
| PayPal is business-to-consumer platform (B2C). | Venmo is peer-to-peer transactions (P2P). |
| It supports purchase-oriented transactions more. | It supports personal transactions more. |
Difference between PayPal and Venmo
Although both these apps make transactions easier, safer, and quicker. Still, there are a few differences that we will discuss.
| PayPal app | Venmo app |
| PayPal payments can be made through the app or their own website where customer can make their accounts. | Venmo payments can only be performed with the mobile app which is either IOS or android where customer has to sign up to use it. |
| PayPal only allows customers to make or receive payments. | In addition to digital transactions, Venmo has a unique “request” feature where customer can set a reminder for another person to make them a payment which is requested. |
| PayPal allows free transactions only while using bank account. | Venmo provides no fee option to payments made using debit cards. |
| PayPal acts as a merchant collecting payments from customers. | Venmo is not used for merchant business transactions. |
| PayPal offers transactions of $10,000 each, with a total cap of $60,000. | Venmo’s limit is $6,999.99 per seven-day rolling period per p2p transaction. |
| PayPal is used majorly by merchants. | Venmo is used by mostly regular people for regular transfers between family and friends. |
| PayPal offers small business tools for merchants making it more b2c focused. | Venmo is more p2p focused. |
Conclusion
By laying out all the differences and features to differentiate between these two digital payment apps, a person can identify which payment app they want to use for digital transactions.
Venmo makes trusted transactions which people are using widely. Venmo is used easily over the phone where it syncs all your contacts. It is also free from linking any of our bank accounts. PayPal can be used to make higher-value transactions and it has a global reach. Venmo will ask you to just sign up whereas Paypal asks you to make your account. Venmo and PayPal are both digital payment apps that are easily accessible by people and have great benefits that are offered to customers. So, choose wisely Which digital payment app you want to use to make future transactions easier.