PayPal and Venmo are both online payment platforms that allow users to send and receive money electronically. Both platforms have been around for many years and have become popular choices for individuals and businesses alike. While both platforms offer similar services, there are some key differences to consider when deciding which one to use.
What is Venmo?
Venmo is a mobile payment service that allows you to transfer money to others or pay for goods and services. It’s a convenient way to pay friends or family for things like splitting the bill at a restaurant, paying rent, or sending a gift. You can use Venmo through their app, which is available for free on both iOS and Android devices. Venmo is owned by PayPal and uses the same security measures to keep your transactions safe. It’s a popular choice for people who want an easy and secure way to exchange money with others.
What is Paypal?
PayPal is a financial services company that allows individuals and businesses to send and receive payments electronically. It was one of the first companies to offer online payment services and has since become a widely-used platform for online transactions. PayPal operates in more than 200 countries and supports a variety of payment options, including debit and credit cards, bank transfers, and PayPal balances.
It also offers a range of security features to protect users’ financial information and prevent fraud. One of the main advantages of using PayPal is that it allows users to make payments and receive money without sharing their financial information with the recipient. This makes it a secure and convenient way to conduct online transactions. In addition to its payment services, PayPal also offers tools for small businesses, such as invoicing and payment processing for online stores.
Venmo vs. PayPal: Quick Look
|Platforms||Android, iOS, web||Android, iOS, web|
|Cost||No cost to open an account||No cost to open an account|
|Fees||1. Sending money from a linked bank account, debit card or Venmo account balance: No fee|
2. Sending money via credit card: 3% fee
3. There are also a few other fees for some transactions, such as cashing a check or receiving payments to a business profile
|1. Sending money from a linked bank account or PayPal balance: No fee|
2. Sending money via debit or credit card: 2.90% plus a fixed fee based on the currency being used
3. Sending money internationally: 5% with a minimum fee of $0.99 and maximum of $4.99, plus any applicable fees for sending with a debit or credit card
|Transaction Limits||1. Combined weekly spending limit of $7,000, for verified accounts, including Venmo debit card and merchant payments|
2. Person-to-person: $60,000 weekly for verified accounts
|1. No limit for verified accounts in a given time frame|
2. Single transaction: Up to $60,000, but may be limited to $10,000 (This amount varies by currency.)
|Availability||Venmo is only available in the U.S.||PayPal has over 300 million users and is available in more than 190 countries, supporting 25 currencies|
Paypal vs Venmo Top Differences
- PayPal is a more established and well-known company, having been founded in 1998. Venmo, on the other hand, was founded in 2009 and was acquired by PayPal in 2013.
- PayPal is a payment processing platform that allows individuals and businesses to send and receive payments online. Venmo, on the other hand, is primarily a peer-to-peer payment app that allows individuals to send and receive money from each other.
- PayPal is available in over 200 countries, while Venmo is only available in the United States.
- PayPal offers a variety of services beyond just peer-to-peer payments, such as a debit card, credit card, and business account options. Venmo is primarily focused on peer-to-peer payments and does not offer these additional services.
- PayPal has a slightly higher fee structure than Venmo. PayPal charges a 2.9% + $0.30 fee for domestic transactions and a 4.4% + a fixed fee for international transactions. Venmo charges a 3% fee for transactions funded with a credit card and no fee for transactions funded with a debit card or bank account.
- Both PayPal and Venmo offer mobile apps that allow users to send and receive money on the go, but Venmo’s app has a more social focus, with a feed that allows users to see their friends’ transactions and activity. PayPal’s app is more focused on financial management and does not have a social feed feature.
- PayPal offers a variety of security features to protect its users’ accounts, such as two-factor authentication and fraud protection. Venmo also offers some security features, such as the ability to set a PIN for in-app payments, but it has faced criticism in the past for not doing enough to protect users’ information.
- PayPal allows users to link their accounts to a variety of funding sources, including bank accounts, credit cards, and debit cards. Venmo only allows users to link their accounts to a bank account or debit card.
- PayPal allows users to buy and sell goods and services using the platform, while Venmo is primarily for personal payments between individuals.
- Both PayPal and Venmo offer customer support through email, phone, and online resources. PayPal also offers live chat support.
- PayPal has a higher overall customer satisfaction rating than Venmo, according to online reviews.
- PayPal allows users to send money internationally, while Venmo is only available for domestic transactions.
- PayPal offers a buyer protection program that covers eligible purchases if something goes wrong with the transaction. Venmo does not offer a similar program.
- PayPal has a higher merchant acceptance rate than Venmo, meaning that more businesses are likely to accept PayPal as a form of payment.
How To Set Up a Venmo Account for personal use?
Setting up a Venmo account for personal use is quick and easy. Here’s how to do it:
- First, go to the Venmo website or download the Venmo app from the App Store or Google Play Store.
- Click on the “Sign Up” button and enter your email address and phone number.
- Choose a username and password, and then click “Continue.”
- Venmo will send a verification code to your phone or email. Enter this code to verify your account.
- Next, you’ll be asked to link a bank account or debit card to your Venmo account. You can also add a credit card at this point if you’d like.
- Once you’ve linked your payment method, your account is set up and ready to use. You can now start sending and receiving money with Venmo.
That’s all there is to it! With a personal Venmo account, you can send money to friends and family, pay for things online and in person, and keep track of your transactions in one place.
How To Set Up a Venmo Account for Business use?
To set up a Venmo account for business use, follow these steps:
- Go to the Venmo website and click on the “Sign Up” button.
- Enter your email address, create a password, and click “Continue.”
- Enter your full name, phone number, and date of birth.
- Click on the “Business” tab and select “Yes” to indicate that you are setting up a business account.
- Enter your business name, tax ID, and business type.
- Review and accept the Venmo Business Services Agreement.
- Click “Continue” to complete the sign-up process.
- Verify your email address and phone number to complete the setup of your Venmo business account.
Note: You may need to provide additional documentation to verify your business and comply with Venmo’s terms of service.
How To Set Up a Paypal Account for personal use?
To set up a personal PayPal account, follow these steps:
- Go to the PayPal website and click on the “Sign Up” button.
- Choose the type of account you want to create. For personal use, select “Personal.”
- Enter your email address and create a password.
- Fill out your personal information, including your name, address, and phone number.
- Agree to the terms of service and click “Agree and Create Account.”
- Follow the prompts to complete the account set up process, including adding a payment method (such as a credit or debit card) and verifying your email address.
- Once your account is set up, you can start using PayPal to send and receive payments.
How To Set Up a Paypal Account for Business use?
To set up a PayPal account for business use, follow these steps:
- Go to paypal.com and click on the “Sign Up” button.
- Select the option for “Business Account”.
- Enter your email address, create a password, and click “Agree and Create Account”.
- Fill in your personal and business information. This includes your name, address, and phone number, as well as the legal name and address of your business.
- Link your bank account to your PayPal account by entering your bank account information.
- Verify your email address by clicking on the link sent to you by PayPal.
- Set up your business profile by adding a business description, logo, and website (if applicable).
Once you have completed these steps, your business PayPal account will be set up and ready to use. You can start accepting payments from customers and clients through PayPal, either through an online payment form or by using PayPal’s payment buttons on your website.