How are Venmo and PayPal different, if they are from the same company
PayPal bought a Venmo back in 2013, and despite appearing to compete with each other, they each have their own public goal
PayPal and Venmo work similarly but have features that make them unique. Cash is becoming more and more obsolete. Although credit and debit cards are already part of our daily lives, the trend indicates that it will no longer even be necessary to charge them. Payment apps are gaining ground, and both PayPal and Venmo are becoming more popular with consumers, although they are both from the same company. What is the difference between them? We will tell you below.
Although PayPal’s roots go back to 1998, its biggest growth has been in the last decade. Its creation was made around eBay so that transactions were simplified and payments could be made online.
Today, PayPal is more than just a platform for sending and receiving money peer-to-peer. Although it is its main feature, it has spotted its services with billing, in-person and online payments, and business financing solutions. Its focus has become more business-like, so much so that it’s part of the checkout process at various stores, including the big box retail chains Walmart and Target.
In addition to simplifying payment for online purchases, it provides greater security and comfort to the user. Instead of having to enter your credit or debit card numbers, which could put your bank account at risk, you can use PayPal to pay easily.
While there are fees for business transactions, there are still no personal account costs for payments sent with money from a linked bank account, Amex Send account, or PayPal balance. Instead, payments sent from a linked card incur a fee of 2.9% plus 30 cents.
Venmo came into the limelight in 2009, but it was not until 2013 that PayPal bought the P2P financial institution by buying Braintree, a company that owned it, for $800 million.
Unlike its parent company PayPal’s app, Venmo has been more popular for its more social features, making it a favorite of many young consumers. Its peer-to-peer payment platform has a more striking look, where you can add stickers, emojis, notes and make your payments public if you wish.
Venmo has no potential monthly fees and costs to send payments from a debit card linked to your bank account or balance on Venmo. That said, if you are using a credit card, you will have to pay 3% of every payment made through the medium.
Are there any Differences Between the two?
Social capability and security are the key features that differentiate the two online payment platforms.
Sending cash on Venmo is a bit less of a hassle. And, it is more fun. This is what users on the platform are often caught saying. Many of the consumers who prefer it claim that they even receive the money faster than with PayPal, as well as is easier to use.
As for the company’s mother application, PayPal, by focusing on a more business level, formalizes its transactions, and has a higher level of protection than its more social platform. Merchants say that having a PayPal account makes them more professional, plus it feels more secure than Venmo.
In summary, if you are a person who only wants to make purchases and send and receive money from your acquaintances without much problem, Venmo may be your option. But if you’re a small business or self-employed person looking for more impact in your industry, PayPal should be your choice.
