Venmo vs PayPal: Which one Is The Best Digital Wallet in 2023?
by Dan Sullivan
With the ever-evolving world of technology, getting things done is almost at a fingertip. And when it comes to the fin-tech industry, making the payment has been simplified.
Money transfer apps such as Venmo and PayPal are offering excellent services in making sending and receiving money and other transaction a lot easier for customers.
Though there are more mobile payment apps available such as Google Pay, Square Cash, and others. And choosing a payment platform to suit your needs is now a considerable task to bear, due to the various options available in the market.
PayPal has won the accolade for the strongest in the payment service demand due to its long term existence . It came to the fin-tech market in 1998.
Back in 2013, PayPal acquired Venmo , another payment application for an amount of about $800 million. Now, the two payment service application has been monopolizing the market.
The two payment platforms do have a lot of similarities, such as:
They belong to the same parent company.
They share a slightly similar fee format and overall layout.
But, irrespective of the similarities, these two money transfer apps do differ in some specific features. And below are some of the significant differences between them.
You can watch this YouTube video of PayPal vs Venmo:
The most important interest for customers while selecting a digital payment service or money application is its security regulations .There have been almost no occurrences that have brought up red flags in the past regarding security.
iv. Means for funding through PayPal Working Capital or PayPal Business Loan.
PayPal enables point of sale and credit marketing, with mobile card readers.
A fee of 2.7% for swipe and check-in transactions.
An additional fee of 3.5% with 15 cents for keyed transactions.
It charges a 2.7% plus an extra 1.5% cross-border fee for none US cards.
But, businesses that make use of Venmo for their payments for goods and services are quite small. Because Venmo has less business-like features. Its system is more for peer to peer transactions. It does not give any outstanding lucrative fees or loans for business consumers.
PayPal is originally made to work with businesses in addition to catering for individuals in making digital payments and transfers easy. Hence, its design is very much suited for business.
This is vital for business holders who aspire to use PayPal for their business deals and Venmo for their private transactions.
This enables them to segregate their private and personal life. Because of the separation of the accounts for their aims makes the most sense.
In case you have clients often visiting your site to purchase either digital or physical commodities, it is better to make use of PayPal to receive their payment.
If you are out for a dinner night and you desire an excellent way of splitting bill by halves, the Venmo application is of best use if you live within the US.
Similarities in PayPal vs Venmo
They can both be used for online payments because they are digital platforms.
You can create free accounts on both platforms.
You can connect them to your bank accounts .
You can use both services to transfer money to families and friends .
Both services are of use for both Android and iPhone users.
Advantages and Disadvantages of both Services
Advantages of PayPal
Simple to use
Users for iPhone and Android are able to download
Very safe to use
It is accessible in over 200 countries
It proposes solutions to business challenges.
It gives discounts for faithful users.
You only need an email address to register for a PayPal account.
Advantages of Venmo
Simple to use.
Account creation is free.
Users for iPhone and Android are able to download
Safe to use
Simple to attach bank accounts
It allows you to send money to families and friends very quickly.
It allows you to send messages to friends.
Disadvantages of PayPal
You will need to pay a specific cost to receive payment.
Due to suspects of suspicious activities, it has a system that can freeze accounts without warnings .
Additional charges by some banks for money transfer from PayPal.
It is not very safe and secure.
Disadvantages of Venmo
$3000 is the maximum you can send.
Many business enterprises do not propose payment for Venmo.
Both parties need to have an account on Venmo before you can send payments.
It is only accessible in the US.
You will need an acceptable telephone number to obtain an account.
The use of PayPal is best for medium-scaled e-commerce business that transacts to international agents. But, if you are within the US, and you trade only in small payment, Venmo is the best.
About Dan Sullivan
Dan Sullivan is a renowned professor and esteemed education writer with a passion for inspiring students and transforming the field of education. With a diverse background in academia and practical teaching experience, he has become a leading figure in educational research and pedagogy.