Venmo Vs PayPal

PayPal and Venmo, being part of the same company, are always a reason for the confusion among people. People are always confused about which one to use and which one is better?

PayPal Bought Venmo in 2013 but they kept it as a separate app. Both the apps are almost similar and secure for money transfer and credit card transactions but there are a few differences also. PayPal also offers the business financing options such as lines of credit, along with free personal use.

PayPal Was founded in 1998 as an online payment portal for e-commerce. eBay bought it and spun it into a separate company. While Venmo was established in 2009 as a payment portal for personal use and it allowed users to share weekly stories with friends with certain privacy measures. In 2012, Braintree acquired it, and later Braintree was acquired by PayPal.

Features of Venmo and PayPal

Pros and Cons of Venmo

Let’s talk about the Pros of Venmo First:

Pros

• It allowed to send or receive money instantly.
• Online shopping is easier with Venmo.
• The Charges are very less unless you are a small business owner and making certain transactions.
• Venmo offers many interesting features and emojis making payments friendly and Fun.
• Venmo offers its users credit card and Debit Cards.

Cons

• It’s only limited to the U.S.
• Provide the weekly limit of $6,999,99 transaction limit to the customers for a person-to-person transaction, merchant payments, and Venmo Mastercard debit purchases.
• It is noted widely for business purposes.
• Privacy settings at Venmo are difficult and the transactions may be visible publicly.

Pros and Cons of PayPal

Let’s Start with Pros:

Pros

• Millions of Merchants are using the PayPal App happily.
• It’s available in more than 200 countries around the globe and allows users to deal in 25 currencies.
• This is a Robust business tool
• It allows reliable methods to receive and send payments and is more convenient for users.

Cons

• The fees of PayPal are complicated.
• It charges the users with 1% fees for instant money transfers to the external bank or debit card.
• The User experience is complex.

How does Venmo Works?

You can connect your bank account, debit card, or credit card with the app to make payments and transfer them back to your external accounts. You also get an option to keep your money in your Venmo account as your Venmo Balance and use it anywhere.

If you sign up for the direct deposit, you can submit your Paychecks directly into your Venmo Accounts. Venmo balance is eligible to pass-through FDIC insurance through Venmo Partner Banks but only if you have dealt in Crypto or added money to Venmo through direct deposit or remote check capture.

How does PayPal works?

Paypal offers you multiple payment options to send or receive money:

Online purchases- You don’t need to enter your personal financial details while buying online. You can simply pay via PayPal.

Personal Payments- If you are shopping at a place where they accept PayPal, you can easily transfer the amount via OR code.

Receive money from your own personal PayPal.me link- It allows you to collect money from a friend’s group with a money pool.

Conclusion

Venmo and PayPal are almost similar apps that can be used for regular payments. Venmo is better for simple transactions to friends or family and the social aspect of the app attracts the younger users.

PayPal is best for large transection and overseas dealing. It offers a more secure business option along with a buyer and seller option.