Venmo vs PayPal: Which Digital Wallet is Better in 2021?

Venmo vs Paypal, which payment app do you use? Let’s talk about those two apps based on their fees, security, transfer limits, and how well they are for business.

Imagine you are having dinner outside with your buddies and you all need to pay. But things become awkward when it comes to asking for a billing split. It can be because your friends don’t have enough cash at the moment. Or, you don’t have any change.

With a digital wallet, you can avoid having such a situation. It will be easier for you to split the bills or payments. Even when you don’t have any cash or change with you.

Furthermore, a digital wallet lets you purchase goods and items effortlessly. Just scan the QR code provided in the shop and your payment will be done in a few seconds.

As a merchant, taking payments using a digital wallet is quite practical because the transactions are safe, simpler, and recorded.

In this post, we will compare about two digital wallets that most people use: Venmo vs Paypal. Here, you will learn which payment app:

• provides cheaper fee
• has better security
• has bigger transfer limits
• is best for business

Let’s get started!

What is Venmo?

Venmo is a digital wallet that is designed as a social payment to split bills or transfer money to friends or families in a safe and fast way.

You can connect your Venmo account with your debit card or a bank account for free. However, there will be some merchant fees if you use a credit card like Visa, MasterCard, Discover, or American Express.

The money in your Venmo balance will stay there until you use it to purchase something, send it to other people, or transfer it to your bank account. And there is no monthly or annual cost for using Venmo.

Venmo also has a social timeline feature that allows you to see other people’s transactions. For example, Maria paid James $10 and there will be a description of what the payment is for.

By default, it’s set to public view. However, if you don’t like this feature, you can change it to private. So, it’s only the sender and the receiver who know about the transactions.

Some apps like Uber Eats, StockX, Grubhub, and Zola support Venmo as their payment method.

Get Venmo for iOS and Android

What is PayPal?

PayPal is a digital wallet that you can use to send and receive money from friends or other people in a simple and secure way. It works pretty much like Venmo but in a better version.

PayPal has been around since the beginning of online transactions. It has several companies and Venmo is one of them. It is also the only payment method accepted on eBay which handles transactions from all over the world.

PayPal has got a long track record, a great history, and a really strong encryption system to keep your transaction safe. It doesn’t share financial information with the sender or the receiver.

This digital wallet has website purchase protection for both buyers and sellers. It allows a buyer or seller to log a dispute about the transaction. Also, PayPal has an excellent conflict resolution system. They track what goes on between the buyer and the seller through an online platform where they’re seeing all the transactions and even sometimes some comments.

In addition, PayPal is available in over 200 countries and it supports 26 different currencies.

Get PayPal for iOS and Android

Venmo vs PayPal: Which Digital Wallet is Better in 2021?

Venmo vs PayPal Fees

One of the aspects that make people decide to choose one payment app over another is the fees. Most people will choose the payment app that offers less cost or even no cost for the services. And it’s pretty normal.

In this part, let’s talk about the battle of Venmo vs PayPal fees.

Basically, everyone can create either Venmo or PayPal account for free. To do this, you will need to insert your phone number and email address. Both Venmo and PayPal work as your digital wallet which you can use to send and receive money. You can use them anytime anywhere. No monthly fees will be charged to you.

Venmo and PayPal let you send and receive money to your friends or family for free with your balance or bank account. However, there is a fee for sending money using your credit card via Venmo and PayPal. Venmo will charge you 3% per transaction when you do so. While PayPal will cost 2.9% + $0.30 for each credit or debit card payment.

The rule doesn’t apply if you send money to your friends or family using your Venmo balance, debit card, or bank account. However, PayPal costs 2.9% + $0.30 to receive money for goods and services.

It is possible for you to deposit payroll or government checks directly to your Venmo account. But, this service is not free. Venmo will also charge you 1.00%, with a minimum fee of $5. And you will need a pre-printed signature for it. On the other hand, adding money from non-payroll or non-government checks will cost a 5% fee with a minimum fee of $5.

If you use Venmo for business account, there is a 1.9% + $0.10 fee when you receive money from Venmo users.

In this Venmo vs PayPal fee battle, as a merchant, Venmo charge you less money than PayPal. But, your customers is limited to pay using dollar only. You may think of using PayPal if you are accepting other currencies than dollar.