Tuesday, August 3, 2021

Venmo vs PayPal- Which One Should You Go For?

“PayPal me” or “Venmo me” are almost synonymous with digital money transfer in the U.S. And that is because the two digital payment getaways are largely dominating the digital wallet industry. And while it’s hard to choose among the two market leaders, there are always factors that make one more suitable than the other, depending on the consumers and their needs.

The Venmo vs. PayPal battle conclusion often comes down to the nature of transactions and the user’s needs. Choices spoil our generation; there is no end to pick from the pool of options in almost every service or product that one requires. And that empowers the consumers to make the sound choice, the one where he doesn’t have to compromise with what they want.

There are innumerable factors that affect the choice of consumers while selecting the right digital wallet. Boiling them down, the major ones are- ease of payment flow, product pricing and fee, security and fraud policies, a limit on transactions, easy checkout, supported business models, and customer service.

ALSO READ: 6 Best Alternatives to PayPal

Fun Fact- Venmo is owned by PayPal!

If you are looking out for a Venmo vs. PayPal battle, begin knowing that Venmo is actually a digital wallet service that PayPal owns. America’s biggest payment getaway acquired Venmo in the year 2013. Braintree first acquired the company for $26.2 million. Later, PayPal acquired Braintree for $800 million, which also included Venmo.

This implies that, in fact, all-cash moves on the two platforms are dealt with by PayPal Inc. in the background.

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The total payment volume of PayPal for Q1 2021 stood at $285 billion. The figure amounted to $51 billion for Venmo.

However, despite being the two branches of the same tree, there are still differences that the users experience while using the two wallets. Therefore, we have listed down a few parameters where they differ from picking the best from the lot for yourself.

Venmo vs PayPal- Choose for yourself

1. Overseas Liquidation

Venmo’s digital transaction platform is only accepted and limited to the United States. Only U.S. bank accounts can be linked to the platform. International or overseas transactions are not possible. On the other hand, PayPal can be used and is supported in over 200 countries and 25 currencies for international or overseas settlements.

2. Target Market

Venmo is believed to be salient in targeted communities and trusted individuals. Sole settlements are possible than larger merchandise or businesses. It can be operated between friends, families, and acquaintances for small payments.

On the other hand, PayPal is a strategic platform designed for both individuals and businesses to operate and initiate money transfers.

3. Security

Both platforms have ensured to inculcate utmost safety measures in the transaction process in terms of security: PayPal and Venmo both call for security checks using SSL technology and OTP. However, PayPal doesn’t require you to register before carrying out a digital transaction, while Venmo does.

4. Fee

Both platforms offer the service of creating a free account and allowing users to link their bank accounts to the wallet without any additional cost. Another similarity lies in the credit card transaction rates, 3% of the total payment on both PayPal and Venmo. However, the two platforms differ on debit card transactions.

Venmo allows free transactions on its debit card, whereas PayPal charges 2.9% plus 30 cents on its debit card transaction. It only allows free transactions on direct bank transfers.

5. Transfer limit

Another stark difference between PayPal and Venmo is the transaction limit. If you are looking for a digital transaction under $5,000, Venmo can be a good choice for you. However, it does not allow transactions above $5,000. On the contrary, PayPal allows single payments of $10,000 each with an overall limit of $60,000 per day.

6. Accessibility

Venmo is a smartphone application service, and if you are looking to make transactions through desktop or laptop, you might want to explore your alternatives. This alternative is PayPal. PayPal allows its users to access its services through Android, IOS, and desktop. Additionally, PayPal is more pervasive in nature, given that one can easily transfer money through its QR codes on stores and showrooms. However, Venmo is still working to achieve that milestone.

7. Interface

Venmo is more like a social, digital wallet allowing people to send a small sum of money to their friends, family, acquaintance, etc. Following this nature of the platform, it provides a social feed where the users can look at all the transactions shared between friends, family, even strangers. Users can even view the feed of their friends, their history of money transfers, and more. This privacy setting can be changed according to the user’s preference.

However, PayPal is more like a merchant transaction platform. Therefore, it provides a more secure and private monetary exchange between the users, making it a more preferred and robust choice.

Gunjan Seth
Gunjan Seth is an MBA graduate and is experienced in writing for multi-dimensional genres. With a keen interest in content writing and communications, she likes to explore different arrays of website content and branding strategies. Besides giving proper attention to details and being ambitious, she is a big travel enthusiast.

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