P2P payment platforms are a financial service that doesn’t come under banking, but the structure is very similar to banks. The payment solutions facilitate the users be they from the business world or personal users, in sending or receiving money without any hassle. There are no minimum balance requirements, nor do you always need to take care of your bank statements.
Fintech has been blessing users with its true potential for many years, making banking easier than ever before. If we talk about P2P payment solutions alone, the market has grown to over 70 million customers, and more people are confident in using P2P solutions than regular banking apps.
The popular P2P payment apps you might have heard of include PayPal, Venmo, Zelle, Cash App, Samsung Pay, etc. Each payment solution has its own upsides and downsides. However, if we have to choose one, comparison is the best way to find the right one. In today’s article, we will compare Venmo and Cash App so that you know which app is a more feasible solution for your needs.
So, let’s get into it.
What Is Cash App?
Cash App is a P2P payment platform that was founded in October 2013. The name of the app back at the time of its inception was Square Cash, and Square Inc owned it. The name of Square Cash and Square Inc. was changed to Cash App and Block, Inc., respectively.
Cash App has a tagline Do More With Your Money, that emphasizes the facilitation of customers to get more control over their money and savings. The app is not a bank but a financial platform, and the users can send, receive, add, cash out, and invest their money with Cash App.
There were over 70 million transacting users with a gross profit of $1.8 billion as of 2021. The company upgraded itself from the basic sending and receiving money model and added features like Bitcoin trading, stock trading, and tax-filing services in 2018, 2019, and 2020, respectively. Cash App provided tax filing services after acquiring Credit Karma Tax.
What Is Venmo?
Venmo is also an America-based mobile payment tool that was founded in 2009 by Venmo, LLC. Venmo, LLC., is a subsidiary of PayPal and is available for both Android and iOS users. At the time of its development, the objective of Venmo was for personal users who wish to split bills when they’re hanging out with their friends and families.
The services of Venmo include sending and receiving money, selling and buying cryptocurrencies, cash advances, instant transfers, etc. The company introduced the feature of buying, holding, and selling cryptocurrency in April 2021.
We can explain it as a digital wallet that makes it easier to transfer money without disclosing your account details. All you need is your email address and password to start using your digital wallet.
Comparison Of Cash App And Venmo
We have already given you a brief overview of what to expect from Cash App and Venmo. Let’s draw the comparison table between the two platforms and know which one is best for which purpose.
Best For
Cash App
Cash app is best for:
- Sending or receiving money from anyone
- Invest in cryptocurrency like bitcoin or stock trading
- Direct deposit payments to your wallet · Spend your money and make purchases with a debit card
Venmo
Venmo is the platform used for purchases, and here are the things Venmo is best for:
- Make online purchases or in-store purchases
- Interact with friends and family or split bills
- Keep a wallet balance
- Buying and selling cryptocurrencies
How Does It Work?
Cash App
Cash App is available to both Android and iOS users. Once you have installed the app and signed up with your account, you can send or receive money through the app, link your bank account or debit card with your wallet, directly deposit your balance to your Cash App, and spend money.
You can also perform banking tasks like direct deposits that are immediately available to you in your app.
Venmo
Venmo app is also available for both Android and iOS users, and you can set direct deposits to your account and pay using a credit or debit card.
You can send money or request money using your unique username. Besides, the app also has a social interaction aspect allowing you to send emojis and stickers to describe the payments. Even users can make their accounts public for their friends and family to see the payments.
Services
Cash App
The services of Cash App are as follows:
- Send or receive money
- Direct deposit
- Invest in stock trading
- Invest in bitcoins
Venmo
The services of Venmo are as follows:
- Make payments with friends and family
- Transfer money for purchases
- Buy, hold, and sell cryptocurrencies
- Send donations to charity profiles
Fees
Cash App
The fees for different services of Cash App are as follows:
- 3% when transferring money using a credit card
- 0.5% to 1.75% when doing instant transfers
- 2-3% when buying or selling bitcoins
Venmo
The fees for different services provided by Venmo are as follows:
- 3% of the value of money when a credit card is used to transfer money
- Instant transfers cost 1 to 5 % of the amount cashed out
- Fees for crypto vary depending on the sale or purchase amount.
Sending And Receiving Limits
Cash App
- The sending limits are $250 per day for unverified accounts.
- The receiving limit for personal accounts is $1000 per month.
- The sending and receiving limit for business users is $15000 per week.
Venmo
The personal account limits are $4999 per week for sending and receiving money. The sending and receiving limit per transaction is $999.99.
Security Features
Cash App
Cash App has encryption PCI-DSS level 1 to protect your data and pause your card to avoid unauthorized transactions when you lose your card.
Venmo
Encryption is used to protect your account information and account activity to save you from unauthorized transactions on your account.
Transfer Speed
Cash App
- It can take up to 3 business days for standard deposits.
- The instant transfer has no delays, and the deposit is made instantly.
Venmo
- It can take from 3 to 5 business days for free withdrawals.
- The standard check cashing can take up to 10 days.
- Using the instant option takes a few minutes to 1.5 hours until the transaction happens.
Ways To Receive
Cash App
You can add money to your Cash App wallet using your linked debit card, linked bank account, credit card, Apple Pay, and Google Pay.
Venmo
If you want to add money to your Venmo wallet, you can do it using your bank account, credit card, and debit card.
Supported Operating Systems
Cash App
iOS, Android, and browsers are supported operating systems.
Venmo
iOS, Android, and browsers are the supported operating systems for Venmo.
Pros
Cash App
- It’s free to sign up and use the app.
- You can get a Cash or debit card for spending money or purchasing at different merchants.
- Invest in stocks and bitcoin
- Free tax filing with Cash App Taxes
Venmo
- You can use the wallet at authorized merchants.
- You can get a Venmo debit card and a credit card.
- Instant transfers from the P2P payment platform
Which One Is Better? Cash App or Venmo
It will be tough to answer the question about which payment platform is better for Venmo and Cash App. Both apps have their own benefits and downsides. Both peer-to-peer payment platforms are used differently, and the decision about which software is best depends on who is using the software.
Customers who want to use a debit card, including the direct deposit feature and other banking features, can use both apps. However, Venmo is better if you want a credit card with no annual charges. Whereas, when it comes to various payment methods, Cash App goes above Venmo as the option of Apple Pay and Google Pay are also available in Cash App.
FAQs
#1. What security features do Cash App and Venmo use?
Venmo and Cash App are developed and built using advanced security measures to protect app users and their personal information. High-level encryption is what protects the data and transactions made through both P2P platforms.
#2. Is Venmo better than Cash App?
Venmo is better in its own way, while Cash App has its upsides in a different way. Cash App is better for stock trading, transferring money across the United Kingdom and the United States, and free tax filing. While for better cryptocurrency options and credit cards, Venmo takes the lead.
#3. Are Cash App and Venmo better than PayPal?
Cash App and Venmo are the tools more concentrated toward personal users who want a mobile wallet to make payments at merchants, restaurants, etc. However, PayPal is a more comprehensive P2P platform used by individual users and businesses.