Digital currency replacing physical currency as the internet became a necessity for everyday life. App-based electronic payment services like Venmo and PayPal have turned into digital wallets for millennials and online businesses. PayPal has been one of the pioneers in the online payment service space, existing since 1998. After it acquired Venmo in 2013, it seems they have dominated the e-payment world. They offer a convenient way to pay with just a touch on our phone screens instead of carrying cash or several cards. There are several e-payment app options for a user, such as Square SQ Cash to Google GOOGL Pay, where Venmo and PayPal had made it to the top of e-payment apps- Venmo versus PayPal.
What is Venmo?
Venmo is a free-to-use app that provides a portal for online payment that allows users to receive and transfer money to family and friends from contacts. It has an interface of a social media feed. If an individual uses Venmo to pay bills at a restaurant, he can post it on his Venmo account. This feature will allow other users in his contacts list to view it on their news feed. Individuals comment on transactions that lead people to add an element of fun to everyday online transactions. Users can put up stories or inside jokes! Venmo has become increasingly popular among the youth and millennials. It has increasingly become trendy, where “to Venmo” is used as a common colloquial term. There are also privacy settings, where the user can control which transactions are visible.
How does Venmo work?
When a user creates an account on Venmo, a mobile number is required to operate it. The app is connected to the Facebook profile of the user or through contacts list can search other Venmo users in family and friends automatically. If the group of peers wants to split their bills, long gone are days when everyone would lay a plastic card or paper cash on the table. With Venmo, anyone can pay the bill and split it among his peers with just a touch next to the contact numbers.
Is Venmo owned by PayPal?
Venmo came into existence in 2009. Braintree purchased Venmo in 2012. Then the PayPal Company acquired Braintree in 2013. Now, Venmo is a part of PayPal.
Does Venmo charge a fee?
If someone purchases with a credit card, there is a 3% charge on each transaction. It is free for debit card purchases.
Venmo vs PayPal- Differences in features:
Venmo and PayPal provide online payment services. They are apps that are free-of-cost, available on app stores of iOS and Android. As PayPal has been the parent company of Venmo, both are trustworthy and efficient. What are the different features and services they offer?
Look at the following points and choose which one is the best for you.
- PayPal requires an email from users to create an account, while Venmo needs a mobile phone number.
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Venmo is a smartphone-device service, unlike PayPal.
- A global e-payment app, Paypal that functions across 200 countries and in 25+ currencies. Venmo, on the other hand, is available only within the boundaries of the United States.
- Venmo charges a 3% fee on purchases made with a credit card fees apply in the case of debit card purchases. Charges on PayPal on each transaction is 2.9% plus 0.30 for purchases made with a credit or debit card.
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Initially, on Venmo, the person-to-person transfer limit is $299.99. After confirming the identity of the users, the weekly transfer limit is $4999.99. PayPal offers a much higher transfer limit, i.e., $10,000.
- Transferring money from bank accounts do not charge any fees in both the apps. In PayPal, it takes one business day (but can take up to 5 business days) depending upon the individual’s bank clearance. In Venmo, it takes one to two business days. The service of instant transfer available to an eligible U.S. bank account or VISA or MasterCard debit card (within 30 minutes). There is a 1% fee from the transfer amount for each transfer.
- Both the services of Venmo vs PayPal security use the same encryption mechanism. Users receive an OTP to confirm transactions. PayPal ensures your bank details and personal information are not visible to anybody else. In the case of Venmo, the user requires to register before proceeding with transactions on the app.
- PayPal offers various additional services for merchants making it an encouraging platform for businesses. A few features that PayPal offers to their sellers’ are- higher transfer limit, fraud protection, global support, Point of Sale options, PayPal business loans, and so on.
Venmo does not provide any fraud protection, as it is a peer-to-peer transaction app. It is functioned to make daily life transaction tasks faster, for example- splitting a dinner bill, paying rent, buying movie tickets, and so on.
Comparing Venmo and PayPal in terms of service has no point, as PayPal owns Venmo. Even though, Venmo has turned out to take up the current trend with its interface of part-digital wallet and part-social media platform. Millennials are widely using this app on an everyday basis. It has been making profits for its parent company. Due to the tinge of informality on Venmo, it is not encouraged for official purposes. The app functions best among family and friends, to pay and receive money from known and trusted people. While PayPal became a well-known e-commerce brand, eBay’s payment portal in 2003. It has been a trustworthy service for businesses, trading, commercial purposes, startups, and so on.
In Venmo versus PayPal, neither services are better than the other in general. But one is more convenient than the other depending on the state of affair of transaction. Venmo or PayPal, you choose for yourself.
