As both mobile payment apps are owned by the same firm, the war Venmo vs PayPal isn’t really a competition. Venmo was purchased by PayPal in 2013, although it was preserved as a distinct company.
Apps for digital wallets are remarkably similar. They can transfer money between bank accounts and execute credit card transactions quickly and securely. They’re also available for personal use at no cost.
However, there are important distinctions; for example, PayPal now offers company finance solutions such as lines of credit. PayPal is a forerunner in the field of internet payments. It was formed in 1998 with the sole purpose of handling internet commerce, was purchased by eBay, and then spun off as a separate company.
Venmo was founded in 2009 with the goal of making ordinary, personal payments. The app’s transaction newsfeed also has a social component, with transactions that may be shared publicly or with a group of friends, or kept private via privacy settings. Venmo was acquired by Braintree in 2012, and a year later, Braintree was bought by PayPal. Some people solely use Venmo, while others exclusively use PayPal, and many people use both.
Payments and restrictions in Venmo vs PayPal
Users can send money using their account balances, bank accounts, and credit/debit cards via Venmo and PayPal.
The initial person-to-person sending limit for new Venmo customers is $299.99. Once their identification has been verified, the maximum is raised to $4,999.99 per week. The transaction limit is higher at $10,000 since PayPal is linked into many e-commerce sites.
Fees: Venmo vs Paypal
Signing up for a Venmo or PayPal account is free, and downloading the mobile apps is also free. Both services provide free balance checks and bank transfers. However, they both charge a fee for credit card purchases: PayPal charges 2.9 percent of each credit/debit card transaction plus $0.30 (in the United States), while Venmo charges 3 percent for credit card transactions (no fee for debit card purchases).
Venmo vs Paypal: Platforms and Availability
Venmo is exclusively available on mobile through apps for iOS and Android. It’s only available in the United States. Meanwhile, PayPal is available in over 200 countries and 25 currencies via iOS, Android, and through a web browser.
Venmo vs PayPal: security
Both Venmo and PayPal use secure, encrypted transactions and keep an eye on their accounts for signs of fraud. Venmo plainly advertises itself as a way for friends and acquaintances to send money to each other. “Venmo should only be used to transact with people you know,” the service claims on their website. Venmo should not be used to send or receive payments from strangers, especially if the payment is for the purchase or sale of a good or service.”
Venmo’s policies specify that it does not provide buyer or seller protection: “Regardless of the type of the payment, Venmo does not offer a buyer or seller protection program for transactions performed using the Venmo app or Venmo.com. PayPal offers buyer and seller protections (mentioned above), such as 24/7 monitoring, fraud prevention, and dispute resolution, because it is used for e-commerce.
Venmo vs PayPal: Features
Venmo is more than simply an online payment system; it’s also a social media platform. Users can look through and comment on transactions from their Venmo network of contacts, as well as share (or not share) their own transactions.
While PayPal can be used for personal payments, it also has a number of business-oriented features, such as the “Business in a Box” plan, which includes payment processing and financial reporting. PayPal also provides loans for businesses and working capital.
Which payment app is better for you: Venmo or PayPal?
Most consumers can utilize either Venmo vs PayPal for their routine, everyday money transactions because they are so comparable. Both connect to bank accounts, charge for credit card purchases, and provide quick withdrawals.
If you want to make basic transfers to friends, such as sharing a restaurant bill or paying your share of the electricity bill, Venmo might be the preferable option. The social aspect of seeing and commenting on their network’s purchases may appeal to younger people. When transferring significant amounts of money, PayPal is the best option. PayPal is the greatest option for sending money internationally and transferring huge sums of money. It’s also the safer alternative for business acquisitions and sales because buyer and seller safeguards are included.