In the United States, Zelle is a digital payment service that lets people send and receive money quickly and safely. It is owned and run by some of the biggest banks in the U.S., and you can use it as a feature in your bank’s app or as a separate app. With Zelle, users can send money directly from their bank accounts to Zelle-enabled recipients. Most of the time, transfers between Zelle-enabled banks happen right away. Zelle focuses mostly on person-to-person transfers and makes it easy to send money to friends, family, or business contacts.
Cash App is a mobile payment service owned by Square Inc. that lets users send and receive money with their phones. Both the United States and the United Kingdom sell it. Cash App has more features than just transferring money. For example, users can buy and sell Bitcoin, invest in stocks, and use the Cash Card, which is a physical debit card that lets them spend their Cash App balance directly. Cash App also offers direct deposit, which means that users can have their paychecks or government benefits sent straight to their Cash App accounts.
Zelle vs Cash App Comparison Table
|Ownership||Owned and operated by major U.S. banks||Owned by Square Inc.|
|Availability||Available in the U.S.||Available in the U.S. and U.K.|
|Supported Platforms||Mobile apps and some banking apps||Mobile apps and website|
|Transfer Speed||Instant transfers within participating banks||Instant transfers within the Cash App network|
|Transaction Fees||Typically free for users||Free for standard transactions, fees for certain features|
|Peer-to-Peer Payments||Focuses on person-to-person transfers||Supports person-to-person payments|
|Mobile Wallet Features||Primarily focuses on money transfers||Includes additional mobile wallet features|
|Bitcoin Support||Does not support cryptocurrency||Supports Bitcoin buying and selling|
|Direct Deposit||Limited support for direct deposit||Offers direct deposit functionality|
|Cash Card||Does not offer a physical debit card||Provides a physical Cash Card for spending|
|Availability of Funds||Funds are typically available for immediate use||Immediate access to funds with Cash Card|
|Security||Utilizes bank-level security measures||Offers security features like PIN protection and encryption|
|Official link||Visit Website||Visit Website|
Zelle vs Cash App Features
Zelle is a simple way to send money, and its customers can’t use any of its other features or services. On the other hand, Cash App gives you a spending account and a free Visa debit card. There is also a feature called “early payday,” which lets you get your pay up to two days early. You can add colors and drawings to the debit card to make it your own. It also gives you access to discounts on some of the most popular brands, called “Boosts.”
You can also put as little as $1 into stocks or bitcoin. It’s a simple way to invest for both new and experienced traders who like things to be easy. When you buy stocks, you don’t have to pay any fees, and you can see statistics, analyst opinions, earnings, alerts about market trends, and set orders. Lastly, filing your taxes is now free, and there are no hidden fees or annoying upsells. You can finish your taxes in just a few minutes and get the most money back from the IRS.
Zelle vs Cash App Supported Platforms
Zelle works mostly through the apps of the banks that are part of it. Users can access Zelle through their bank’s mobile app or website. This means that Zelle payments can be sent and received right through a user’s existing banking app, making it easy for customers of those banks to use. It’s important to remember, though, that not all banks offer Zelle integration, and the number of banks that do may vary.
Cash App, on the other hand, works on a wider range of platforms. It has separate mobile apps for both iOS and Android devices, so users can use all of Cash App’s features right on their phones or tablets. Cash App has both mobile apps and a web-based interface that can be accessed through a browser. This lets users access their accounts and do basic tasks from their computer.
Zelle and Cash App have different approaches, and the platforms they work on show that. Zelle focuses on making its service work with existing banking apps, so that users can take advantage of the convenience and familiarity of their banking platforms. Cash App, on the other hand, focuses on being a stand-alone mobile app while also offering a web-based interface for easier access.
Zelle vs Cash App Safety
Cash App and Zelle are both safe digital finance platforms that keep your money and information safe with two-factor authentication and data encryption. But they do different things, so they are regulated in different ways. In the end, we recommend that you only send money to vendors and people you know and trust, since scams don’t always pay back. It might help to think of your transfers as cash transactions that can’t be taken back.
Yes, Cash App is a safe way to manage your money because it works with banks that are insured by the FDIC. When you verify your Cash App account, you will get a routing number and a checking account number that you can use to hold cash balances with their bank partners. In the unlikely event that Cash App goes bankrupt, the FDIC will cover eligible accounts up to $250,000 per customer.
You can trade stocks on the stock market with Cash App. Cash App Investing LLC, which is a member of both FINRA and SIPC, is the company that does their brokerage work. You should know that investing is risky and that you could lose money. The FDIC does not cover balances in investment accounts. Zelle is a safe financial service that keeps your payments and data safe by using high-security measures. Zelle is only a service for sending money electronically. It doesn’t have current accounts, so it doesn’t need to work with FDIC-insured banks that hold customer money.
Zelle makes it easy to send money to anyone who has an email address or phone number registered with the service. If you want to send money to a vendor you don’t know or trust, you should try to use a credit card first if you can. Zelle does not protect you from fraud, and payments can’t be taken back without the recipient’s permission.
Zelle: Pros and Cons
- Direct integration within participating banks’ apps.
- Instant transfers between users with participating banks.
- Wide availability through partnerships with major U.S. banks.
- Easy and convenient way to send money to contacts.
- Typically free to use for users.
- Limited to participating banks and may not be available with all banks.
- Limited additional features beyond basic money transfers.
- Not available for international transfers.
- May require recipients to have Zelle set up.
Cash App: Pros and Cons
- User-friendly mobile app interface.
- Allows for easy and quick person-to-person money transfers.
- Offers additional features like investing and Bitcoin buying/selling.
- Provides a physical debit card (Cash Card) for spending.
- Supports direct deposit for paychecks or benefits.
- Transaction fees for certain features.
- Availability limited to the United States and the United Kingdom.
- Limited customer support options.
- Requires setup and linking of bank accounts.
- Some users may find the app interface overwhelming.
Which one should you consider?
You can’t go wrong with either of these apps if your main goal is to receive money or send money to friends and family. Your choice may come down to which app is more popular among the people you know. Cash App might be a better choice if you want to do things like buy stocks and Bitcoin, send money to the UK for free, or use a cash card to get discounts. The fact that Cash App lets you file your taxes for free may also make it the better choice.
Cash App and Zelle are both safe digital finance platforms that keep your money and information safe with two-factor authentication and data encryption.
If the recipient is signed up for Zelle, you can’t cancel a payment after it’s been sent. There is no debit or credit card with the Zelle name on it.