What’s the difference between Venmo and cash app? Explained

Cash App and Venmo are peer-to-peer payment apps that make it easy to send and receive money, all through your mobile phone. Both offer a variety of payment methods, as well as ATM withdrawals, instant transfers, and other helpful features. Is the app better than the other one? Which app is better for you, more so? We are going to compare the two apps and see which one is better for transferring money.

Cash App vs. Venmo

Sending and receiving money are both included in the fee structures for Cash App and Venmo. There are a few differences between the payment methods and transfer limits of each app. A quick overview of how the two apps compare can be found in this table.

How does Cash App work?

Square owns Cash App, a payments app and financial platform that is not a bank. Money transfer service provider that allows you to send and receive money through a mobile app or by logging into your Cash App account online Cash App has additional services and features, such as investing in stocks or trading Cryptocurrencies. It is possible to get a free Cash Card that will connect to your Cash App balance and can be used anywhere Visa credit cards are accepted. Cash cards can be used to make withdrawals from ATMs, as well as being connected to digital wallets.

Cash App Benefits

  • Safe and secure transactions with data encryption
  • No fees to send money from your balance or a bank account
  • Simplify reimbursements with payment requests
  • Convert to Bitcoin or invest in stocks inside the app

How does Venmo work?

Venmo is a mobile app and payments service owned by PayPal. It is possible to use it to send and receive money, make purchases at eligible stores, and buy and sell Cryptocurrencies. Many people use the app to make everyday money transfers, such as paying a friend for lunch or sending rent money to their roommate. A credit card and a debit card are also offered by the service. Both give cash back when you make eligible purchases, and you can use your Venmo app to manage them. The credit card is issued by Visa while the debit card is issued by Mastercard. MoneyPass ATMs in the U.S. allow you to use the Venmo debit card for fee-free withdrawals if you need cash. If you’re going to use a credit card to send money, you should read about the best credit cards.

What both apps excel at

The best money apps overlap in many ways, and Cash App and Venmo are no different. Both mobile payments apps offer the same service of sending and receiving money, so it’s no surprise that they have some similarities. Some of the features and benefits that Cash App and Venmo share are listed.

  • Sending and receiving money:

Sending money with a credit card is one of the main features of both of the apps. If you don’t want to carry cash on you at all times, you can use your phone to pay someone with either app.

  • No hidden fees:

Neither app charges a monthly maintenance fee, and both are free to download. Unless you specifically want a quicker transfer, you won’t have to pay high fees to send and receive money.

  • Transfer limits:

If you go through a verification process, the sending and spending limits can be increased for new users. Documentation or more personal information is typically included in this process.

  • Transfer speed options:

Standard transfers or instant transfers can be made through Cash App and Venmo. Standard transfers are usually free and take a couple of days to complete. There is a 1.5% fee for instantaneous transfers.

  • Supported devices:

It is simple to get started with either app on any device, as well as through a web browser. The Cash App is available on the App Store and the Venmo app is available on the Play store.

  • Extra features:

There are ways to invest your money in both apps. Some people might find these features helpful, but you don’t have to use them.

4 important differences between Cash App and Venmo

Cash App and Venmo were designed to send and receive money, but they have other uses as well.

Payment methods

If you want to send money to someone else using a payment service, you usually have to choose a payment method. Both Cash App and Venmo offer payment methods such as using a credit card, a debit card, a linked bank account or your account balance.

You can use Apple Pay and Google Play with your Cash Card by connecting them to the Cash App. It’s possible to use American Express credit cards without paying the standard credit card fee with the Amex Send feature. It should be noted that you won’t receive any rewards for credit cards used this way, but it is still a unique feature that is more useful than what Cash App offers.

International transfers

Users in other countries can’t use Venmo because it requires them to be physically located in the U.S. Even if you are traveling abroad, you might still be able to send and receive money from other U.S. based Venmo users. It is not expected to be used with any non-U.S. based users. The Cash App is the better option for international transfers.

Cash App is available in the U.K., which increases its ability to be used around the world. It is still more than what Venmo offers, but it is not a much broader reach.

Investing

Investing is not as comprehensive as the best investment apps, but it is new on both Cash App and Venmo. The Cash App can be used to buy, sell, and trade all types of financial instruments. While Venmo does not allow you to invest in stocks, it does allow you to buy popular Cryptocurrencies.

There is no overall winner in this category because it depends on your situation and investing preferences. If you don’t want to invest in stocks and are more interested in the cryptocurrencies offered by Venmo, it may be a better option. Cash App might be better for you if you want to invest in both stocks and Bitcoins.

Filing taxes

Cash App allows you to send, receive, and invest money, as well as filing taxes. The feature in the Cash App is new, and it is seen as a unique move. Cash App is the clear winner due to the fact that Venmo doesn’t have anything like this.

Which app should you choose?

The Cash App is the better app for you. Your lifestyle and financial preferences are some of the factors that affect the price of Venmo. Both apps are easy to use for sending and receiving money, and there aren’t many fees to worry about.

If you only use the apps for money transfers and stick to the standard transfer times, you won’t pay any fees at all. Depending on which one your friends and family members use, you might prefer one app over the other. It probably wouldn’t make sense to use Cash App if they primarily use Venmo. Cash App users have more options to invest in stocks, while Venmo users have more opportunities to invest in cryptocurrencies.

Take a look at the differences of each app to see how their features fit with your financial goals. You should keep in mind that there are other payment apps available. Zelle is one of the money transfers options available from many of the best banks.

Frequently Asked Questions-

Is Cash App safer than Venmo?

Ans-It’s possible not necessarily. Money transfer apps, such as Cash App and Venmo, are risky since they involve sending money to other people. If you stick to sending money to friends and family, you won’t run into any issues involving scam. Both apps use protection methods to help ensure your account information is kept secure.

Is Venmo cheaper than a Cash App?

Ans-Account or maintenance fees are not charged by Cash App or Venmo. As long as you use your account balance or a linked bank account for the transfer, you don’t have to worry about extra fees. Neither app is cheaper for sending and receiving money than the other.

Which app is better for paying your friends?

Ans-If you have an email address or phone number, both Cash App and Venmo make it easy to pay your friends, as long as you are connected through the app. Like a social media network, Venmo focuses on networking with friends and family and functions similarly. If you have an email address, phone number, or $Cashtag, the Cash App can be used to pay and receive money from anyone. Sending money to people you don’t know might be a better way to do it.

Is Cash app or Venmo better?

Ans-Cash App has added features that allow you to invest in stocks, buy Bitcoin and receive direct deposits. If you want to simply send and receive money, Venmo might be more suited for you.

How is Venmo different from a cash App?

Ans-Venmo has a more social feel, allowing users to share messages detailing what they’ve spent their money on. Users can carry a physical card for their account and use ATMs with the new Debit card option on Venmo. Cash App has a physical Cash Card that can be used to withdraw money from an ATM.

Is the Cash app as safe as Venmo?

Ans- All your transactions are safe, too. Your money is at risk because it is not insured by the Federal Deposit Insurance Corp. The interest will not add if you keep a standing balance. You should only use the Cash App with people you know and be aware of who you send money to.

Conclusion

Cash App and Venmo make it easy to send and receive money from a mobile device or web browser. You cannot go wrong with either option if you want to transfer money between friends. You may need to compare the differences between the apps for more features. Cash App provides ways to invest in both Bitcoin and stocks, while Venmo focuses on popular cryptocurrencies. These differences could push you toward one app over the other if you are just starting to learn how to invest money.