Venmo and PayPal are the two most famous payment platforms, which can help to send and receive money easily to and from customers or friends. PayPal was introduced in 1998 as an electronic payment system structured for online transactions. Venmo evolved after 11 years to make transactions easy daily for users through text or a mobile device.
The platforms can be compared based on fees, accessibility, money transaction limits, etc.
Venmo vs. PayPal
| Paypal | Venmo | |
| Payment Methods | 1)iOS, Android, web
2)Credit, debit, bank transfer |
Credit, debit, bank transfer |
| Credit Card Fee | 2.9% + $0.30 | 3% |
| Bank Transfer Fee | Free | Free |
| Debit Card Fee | 2.9% + $0.30 | Free |
| Fee | Free usage | Free usage |
| money transfer Limit | Till $60,000 (limited to $10,000 in a single transaction) | $4,999.99 |
| Withdrawal Time limit | 3-5 business days | 1-3 business days |
| Best for users | Businesses (merchants) | Everyday users |
| Availability | 200+ countries | The U.S. only |
A brief overview: Venmo vs. PayPal
- Accessibility: Venmo and PayPal both are accessible via a desktop or mobile browser or by using their apps. PayPal permits users to make payments online and its app, while Venmo transactions can only be made via the Venmo app.
- Payments: Venmo and PayPal both permit users to send funds via their account balance or from the connected credit cards as well as bank accounts.
- Sending Money: Venmo app is structured to send money to other Venmo users in an easy way. This app can detect the Venmo accounts of relatives and friends by itself via connecting to a user’s meta account and phone details.
PayPal allows users to send money to anyone’s bank account or cash pickup position in over 130 countries with the help of its Xoom service, even for non-account holders. Fees may vary by country and deposit or the withdrawal, costing users starting from $4.99 for a single transaction.
- Depositing Checks: latest surprise, Venmo got a new check facility that allows users to deposit a check into their Venmo account by clicking a picture of it on the Venmo app. As soon as the check is approved, the deposited funds are there in a minute. Only Venmo app users are allowed to use the feature, they need to sign up on the Venmo app to see if it’s present.
- Business Features: As discussed above, Venmo has just started to become more merchant-friendly. While PayPal is focused on merchants, it provides more features for business than Venmo to the customers.
PayPal: Buyer Protection
- 24/7 monitoring
- Fraud prevention
- Full refund in case the order never reached
- Full refund if the buyer fetch the wrong item
- Full refund in case item is damaged during shipping
- Full refund if the buyer receives a fake version of the item
PayPal: Seller Protection
- 24/7 monitoring
- Merchant fraud prevention
- No chargeback for Item Not Received
- No chargeback for Unauthorized Transaction
- Additional Features: PayPal provides their customer’s cashback and points-based credit cards, along with a digital line of credit, where PayPal is bearable. But Venmo cannot compare on this ground, it can offer a real card that expands Venmo’s buying power towards any merchant.
Whereas, PayPal has touched the cryptocurrency market. Where users can purchase, hold, and sell Bitcoin, Ethereum, Litecoin, and Bitcoin Cash with a PayPal or Cash account easily.
Conclusion
In common, although Paypal and Venmo both services are owned by PayPal, PayPal is having more features, its a secure, and safe choice for conducting online payments. For sending money quickly and easily to friends and family, Venmo can be the better choice.