PayPal owns the mobile payment service Venmo, which is used by many people. It makes it easy for people to send and receive money using their mobile devices. Venmo is mostly used for peer-to-peer transactions, making it easy for friends, family, or acquaintances to split bills, pay for shared expenses, or send money to each other. Users can easily pay other Venmo users by linking their bank accounts, credit cards, or debit cards to their account. Venmo also has social features that let users like and comment on transactions. This gives the payment experience a social touch.
PayPal, on the other hand, has been around for a long time and is a well-known way for people and businesses to send and receive money online. It offers more services than just peer-to-peer transactions, such as online shopping, payments to merchants, and sending money to other countries. Users can connect their bank accounts, credit cards, or debit cards to their PayPal accounts. This makes it easy and safe to pay online. PayPal is widely accepted by online stores around the world, and it has protection policies for both buyers and sellers to make sure that transactions are safe.
Venmo Vs PayPal User Accessibility
Once a user has made an account, they can use either Venmo or PayPal online or through a mobile app on a desktop or laptop computer, tablet, or phone. One big difference is that you can only pay with Venmo through the app, but you can pay with PayPal online or through the app. Another difference is that Venmo is only available in the United States, while PayPal is in more than 200 countries and accepts 25 different currencies.
Venmo Vs PayPal Comparison Table
| Feature | Venmo | PayPal |
|---|---|---|
| Payment Types | Peer-to-Peer (P2P) Payments | P2P Payments, Online & In-Store Payments |
| Mobile App | Available for iOS and Android devices | Available for iOS and Android devices |
| Social Integration | Emphasizes social connections | Primarily focused on financial services |
| Transfer Speed | Instant transfers | Instant transfers and standard options |
| Payment Limits | Initial limits on transactions | Flexible transaction limits |
| Fee Structure | Free for standard transactions | Fees for certain transactions and services |
| International Payments | Limited availability | Widely available for international transfers |
| Buyer/Seller Protection | Limited protection for purchases | Robust buyer/seller protection |
| Account Types | Individual accounts | Individual and business accounts |
| Supported Countries | Primarily available in the US | Available in multiple countries worldwide |
| Official Link | Visit Website | Visit Website |
Venmo Vs PayPal Security
Both PayPal and Venmo care a lot about the safety of their users. PayPal keeps an eye on all transactions and uses secure technology to protect your information and purchases. There is also help with settling disputes and protection in case something goes wrong with a purchase. Venmo uses encryption to keep your account safe and keeps an eye on payments for fraud or other illegal activity7.
Venmo Vs PayPal Payments
Both Venmo and PayPal let users send money from their account balance or from credit cards and bank accounts that are linked to their accounts. Before, only a few businesses, like Uber, Grubhub, Forever 21, J. Crew, and Poshmark, accepted direct payments through Venmo. But since then, the company has added more online partners and started letting stores (starting with CVS) let customers pay with Venmo without touching the card reader. PayPal already lets its retail partners pay without touching a QR code.
PayPal is used by online stores and many e-commerce sites that let people use their PayPal accounts to buy things. Because PayPal is designed for business use, it has a high transaction limit of $60,000 (and may be limited to $10,000 per transaction).4 Users of PayPal can turn on the One Touch feature, which lets them enter their PayPal information only once and shop from participating merchants with just one click, without having to sign in to their account every time. One Touch can be used on both computers and phones. Shoppers can also scan eligible QR codes with the PayPal app and pay directly that way.
Venmo Vs PayPal Sending Money
Both apps let you sync your contacts with the app, so it can look for your friends and family who also have PayPal or Venmo accounts. But if the app doesn’t show the contact you’re looking for, you can still send money to them by using their username, email address, or mobile number.
After you choose the person you want to pay and the amount, both PayPal and Venmo will ask you how you want to pay. If you have money left over in either account, you can pay with that money. If you don’t, money will be taken out of the bank account, debit card, or credit card you choose as the way you want to pay for this transaction. Once you hit “send” on your payment, the money will be in the user’s PayPal or Venmo account within a few minutes, and often within seconds. If you send money to the wrong person with either app, you won’t get your money back.
Venmo Vs PayPal Requesting Money
On the Venmo app’s home page, there is a Pay/Request button. If you tap it and choose Pay or Request, the app will show you a list of users with whom you have already done business. If the person you want to pay you is not listed, you can search for them or just ask them for their username. You can also use their app to scan the QR code if they have one. But you won’t get paid until the person sees your request and sends the money. Their payment will go to your Venmo balance, where it will stay unless you choose to move it to another account. To transfer, choose “Instant” for a fee of 1.75 percent or “1–3 business days” for free, then choose your preferred bank account or debit card and click “Transfer.”
To ask for money through PayPal, open the app and tap “Request.” Enter a dollar amount, look for the PayPal contact you are doing business with, and then tap “Request Now.” You can also ask for payment online by going to PayPal.com and logging into your account. Click the “Request Payment” tab and enter the person’s email address and the amount you want them to pay. Once the person has seen your request and sent money, you will get paid. Funds will stay in your PayPal balance account, but you can move them to a linked bank account or credit card for free in a few days or instantly for a 1.75% fee.
Venmo: Pros and Cons
Pros
- Convenient mobile payment service.
- Easy peer-to-peer money transfers.
- Social features enhance the payment experience.
- User-friendly interface.
- Integration with social networks.
Cons
- Limited availability outside of the United States.
- May not be suitable for large-scale or business transactions.
- Transaction fees for certain transactions.
- Limited customer support options.
- Privacy concerns due to social features.
PayPal: Pros and Cons
Pros
- Established and widely recognized payment platform.
- Acceptance by numerous online merchants.
- Secure and convenient online payments.
- International money transfer capabilities.
- Buyer and seller protection policies.
Cons
- Transaction fees for certain transactions.
- Limited integration options for some platforms.
- Account holds and freezes in certain situations.
- Not as user-friendly for peer-to-peer transactions as Venmo.
- Customer support response times may vary.
Which one should you consider?
Even though both services are owned by PayPal, PayPal is by far the more secure, reliable, and safe way for businesses and customers to pay each other online. Over the years, it has had time to improve its mobile app and add more services. Since Venmo is a newer company than PayPal, it is still trying to catch up. But Venmo is better than PayPal when it comes to sending money to friends and family quickly and easily. This makes it the better choice for most people.
FAQs
With just a few clicks, you can send and receive money. The app will even sync with your phone’s contacts to make it easier to send money to people you know. Compared to PayPal, Venmo’s fees are lower. For example, there are no fees when you buy something with a debit card.
But even though Zelle might seem safer, other apps like Venmo and PayPal are just as safe. All of them use encryption to protect users from unauthorized transactions and store users’ information on servers in safe places. Users can also set a PIN code to get into the mobile app through Venmo.
