For many years, Venmo and Cash App have been two of the most popular apps people use to send and receive payments from each other. Both these apps are simple and easy to use, allowing users to instantly send payments to friends and family members.
So, how do you decide which of these two services is better for you? Take a look at this detailed comparison between Cash App and Venmo so that you can learn more about what each has to offer and how they stack up against one another!
What is Cash App?
Cash App is a mobile payment app that can send money to your friends in seconds. The app is available for both IOS and Android devices, so there’s no need to worry about compatibility.
To send money, you enter either a dollar amount or an emoji symbolizing your desired amount. You then enter the phone number or username of the person receiving the funds, type in the security code, press send, and voila!
Pros:
Money Transfers are fee-free.
Direct Bitcoin investments available.
Visa debit cards are available for use anywhere in the world.
Ability to pay taxes and receive tax refunds directly onto the digital wallet associated with your account.
Cons:
Funds are not FDIC insured.
Trading options are limited.
What is Venmo?
Venmo is a peer-to-peer payment service that allows you to send or receive money. It’s also a social platform where you can chat with friends and share what you’re up to. You can link your bank account, credit card, debit card, or even your PayPal account to make payments.
Regarding security, Venmo has all the bells and whistles: it’s encrypted and complies with the Payment Card Industry Data Security Standard (PCI DSS). When you initiate a transaction, the recipient has three days to accept it; otherwise, it will be returned to your balance.
Pros:
Free fund transfers between Venmo Accounts.
Mastercard Debit Card.
Accepts Check Deposits.
A Social Aspect to Transactions.
Cons:
Funds are not FDIC-insured.
Transactions can be viewed publicly.
How Do They Work?
Cash App: Cash App is a mobile app that allows users to send money to one another using their phone numbers or email addresses. You can also purchase items from stores or online retailers through the app, which will then be shipped to your home address.
Venmo: Venmo is a mobile payment service that allows users to transfer funds from one person to another by entering the recipient’s name, email address, or phone number.
Venmo is typically used for peer-to-peer payments. Cash App is mainly used for in-person transactions with friends or small business owners. The user interface on Venmo is more intuitive and user-friendly than Cash App. On top of this, more people use Venmo daily than Cash App.
Fees
Cash App: The cash app charges no fees for sending or receiving funds but charges 1.5% for instant transfers such as Apple Pay and Google Pay transactions.
Venmo: Venmo also offers its users services without cost, including sending money from one account to another using bank accounts, debit cards, and direct deposits with a fee of 1% – 5%.
However, if you want your funds transferred from other payment methods, such as credit cards, a 3% service fee applies here too.
Credit Limits
Cash App: On Cash App, those without verification are restricted to a maximum of $250 per week and $1,000 monthly.
Venmo: On Venmo, unverified users are limited to transferring up to $299.99 a week. Those who verify their accounts can exceed this limit significantly – both apps allow for up to 10k monthly while they cap maximum weekly transfers at 4-6k.
Payment Methods
Both apps offer payment methods, including bank transfers, direct deposits, debit cards, and credit cards. Cash App also includes the added convenience of transactions through Apple Pay and Google Pay, while Venmo accepts checks but has faster transfer rates at a premium cost.
Supported Platforms
Both Cash App and Venmo are available for both Android and iOS. Each of these apps has been specifically tailored for mobile usage, but if you also want to use them on a computer instead – you can head over to their respective websites.
Regional Availability
Venmo: Venmo is only available in the United States and can only send money to other Venmo users.
Cash App: In contrast, Cash App started in America but has since expanded to the United Kingdom – though it limits its abilities and only allows cross-ocean transactions between those two countries. If you ever need to send cash to someone outside the United States, an international service would be best for you.
International Payments
Cash App: Cash App only supports USD-GBP and GBP-USD transfers. Transfers are free, and payments will be converted to the receiver’s currency at the mid-market or interbank rate. Limits for un-verified users include ($250 sent in 7 days; $1000 received in 30 days).
Venmo: Venmo doesn’t support international transfers.
Security
Cash App and Venmo are money transfer apps but are inherently risky because they involve sending funds to others. However, if you stick to sending funds between friends and family, you probably won’t experience scam-related problems. Both apps use encryption tools and other security measures to prevent your account information from being stolen.
User Interface and Ease of Use
Both apps have a simple interface.
Cash App: With the Cash App, you can either create an account through the website or download the app and register with your phone number to quickly be verified. You then link your bank account or card (credit/debit) to send/receive money payments via transfer.
Venmo: For Venmo, download their app, sign up with Facebook for an easy connection to find friends easily (or use just your name, email address, and phone number), add cards for payment methods, and verify if you wish – all of which links to your checking account.
Customer Service
Cash App can be reached via phone, email, and live chat; however, they’re often short-staffed, making it challenging when there’s an urgent issue. Venmo can also be contacted by email and live chat, but the responses take longer than expected.
Moreover, while you can contact them about any matters relating to their credit card – such as billing or making payments – since the respective bank actually issues the cards, not Venmo, you’ll still need to go through them for anything related to your debit or credit account.
Special Features
Venmo: Cash App and Venmo operate very similarly when deciding on which application to send and receive money. The only difference between the two apps is how much they offer in different features.
Venmo provides a fun yet valuable way for people to transfer money to one another. You can use it to find out what others are up to in their financial lives and send them well-wishes, which they then see when logging into the app later on. Privacy is an important feature, too – you can decide whether or not your activity will be limited only among friends, kept hidden from all but yourself, or made totally private.
Venmo also offers cryptocurrency investments. With many cryptocurrencies available, there are plenty of ways for users to diversify their portfolios and invest responsibly while maintaining some control over the process.
Cash App: Cash App does not share your transactions with anyone or offer social features. But there are more investment options and market data available for beginners. You can invest in stocks or bitcoin without linking a credit card, making it an excellent way for new investors interested in stock trading to get started.
Physical Cards
Venmo: Venmo provides users with a debit card that can be tied to their Venmo balance. This card supports contactless payments and includes no-fee withdrawals from select ATMs anywhere you go. For those who qualify, there is also the option of getting a Venmo Visa credit card with rewards, which include up to 6% cash back on all purchases and various other perks inside the app.
Cash App: The Cash App Cash Card is a debit card that lets you spend money from your account anywhere, anytime. You can link it to your bank account or PayPal, and there are no fees associated with the card – so it’s perfect for people who don’t want to use cash all of the time but still need a little bit of spending power on hand without having to carry around a ton of bills and coins.
Conclusion of Cash App vs Venmo
Overall, the two apps function similarly and follow a similar fee schedule. When choosing which one to use, many users download an account on both services because of the primary functionality of sending and receiving money with your contacts.
There are other options besides Venmo and Cash App for exchanging funds quickly from your phone. Zelle, Apple Pay Cash, and PayPal are just a few of these alternatives. One advantage to using these services is their popularity among business owners who need a quick transfer of payment without taking out cash or doing anything complicated such as waiting days for bank transfers.
Choosing the best app for you between Venmo and Cash App will depend on several factors. Both apps are easy to use for sending and receiving money, but there isn’t much need to worry about fees when your balance remains relatively low.
If you’re willing to put up with some higher fees to get a range of investments, such as stock trading, then Cash App is the best option. If you want an easier way of paying people back without dealing with serious charges, Venmo may be your best bet. Regardless of which is ultimately chosen, both come highly recommended!