venmo vs Cash App

Venmo vs Cash App – User Interphase, Security & Tax Comparison

In the world of digital transactions, venmo and Cash App offer their users smooth and safe transactions. Both of these app holds a lot of similarities such as these two apps letting you send money back with friends and family very easily for free, and allowing you to connect your cards or bank accounts to send money.

In this blog, let’s explore the things that make these two apps different from each other and what makes the difference between venmo vs Cash App. 

Also Read: Venmo to Cash APP money transfer

Overview – Venmo vs Cash App

Let’s discuss the overview and background of venmo and Cash app

Venmo:

Venmo is a peer-to-peer mobile payment app which is founded in 2009 and later in 2013 owned by PayPal.

Cash App:

Under the name of Square App, Cash App was initially launched by Block, lnc. on October 15, 2013. Square App opens the cash app for teenagers from 13 to 17. This app holds a lot of similarities to venmo and is used to transfer the amount to your friends and family. Until 2021, almost 70 Million annual transactions are reported annually and gross profit is US$1.8 Billion.

However, the best thing about this app is that you can send money not only in the United States but also in the United Kingdom. 

Venmo FeaturesCash App
2009 Launched2013
Easy to Understand InterfaceColorful and User-friendly Interface
Starts with @ SignUsernameStarts with $ Sign
iOSAndroidAvailabilityiOSAndroid
App Store: 453.5 MBGoogle Play Store: 82 MBDownload SizeApp Store: 344.2 MBGoogle Play Store: 42 MB
Instant Within 1-3 business daysTransaction SpeedInstant Within 1-3 business days
Two-Factor AuthenticationAuthentication and SecurityPCI Data Security Standard (PCI-DSS)
For Instant require a 1.75% FeeWithin 1-3 business days require no fee.Payments or Fee StructureFor Instant require a 0.5% – 1.75% FeeWithin 1-3 business days require no fee.
NoReverse Payment No
YesSupport Crypto Yes
EnglishLanguage English and French
Only in the U.S.Offer Services United States and United Kingdom
Cash App

User Interface

Have a brief look at the user interface of venmo vs cash app. 

Venmo:

Venmo app is known because of its smooth and secure transaction and user-friendly interface.

Cash App:

The user interface of the cash app is very colorful and easy to understand because of its bold text. You can easily navigate all the features and options of the app to make your transactions smooth and easy. You can easily find the other persons using their email addresses, phone numbers, or the user name. 

Transactions Speed

Now, I will tell you the transaction speed of both apps. 

Venmo:

If you want to send the amount via venmo, for instance, you have to pay a 1.75% fee and for 1-3 business days transactions there is no fee.

Cash App:

Cash App offers Instant deposits and Standard Deposits to your linked debit card and bank account. However, the instant transfer requires some additional charges from 0.5% to 1.75% fee. On the other hand, if your money waits, then you can use a standard deposit which takes 1 to 3 business days to transfer your money. 

Authentication and Security

The authentication and security of both apps are discussed below. 

Venmo:

For authentication and security purposes, venmo is considered one of the safest and most secure mobile payment apps because it uses Two-Factor Authentication. 

Cash App:

Cash App offers fraud detection and encryption technology that helps to manage and secure your data and financial information from hackers and scammers. They also notify their users when they find any suspicious activity like security changes and PIN changes. It also uses the PCI Data Security Standard (PCI-DSS) to prevent the misuse of your personal information. 

Fee or Rate Structure

Let’s discuss the fee or rate structure between venmo vs Cash App. 

Venmo:

Here is the structure of venmo:

Payment TypeRate
Instant1.75%
Within 1 to 3 days None
Payment sent to your business account1.9% + $0.10 on every seller transaction
For Contactless Paymnet 2.29% + $0.10 on every seller transaction
Fee or Rate Structure

Cash App:

There is no fee for creating and setting up an account on the cash app. Creating an account on this app is free of cost. If you want to send money using your credit card then, 3% of the fee is applied. 

However, the cash app deducts a 2.75% processing fee on every transaction when you receive your cash from a business account. On the other hand, when you receive an amount from a customer on your cash account for a business account, then their is no deducted fee. 

Which one is more secure: Venmo vs Cash App?

Well, In my opinion, venmo is more secure than the Cash app as it also has double the number of users as the Cash app.  Both apps hold a lot of similarities and features. Moreover, if we talk about the cash app, no one is downloading this app for the sole purpose of it and being their main banking platform. However, a lot of people download these apps to send and receive payments to their friends and family. 

Which one is better for small businesses Venmo or Cash App?

It is hard to argue between both apps and tell which one is better for your small business. Both apps offer almost similar features and tools. However, during the observation, I came to know that venmo has a larger number of users than the Cash app. 

So, it is difficult for you to transfer the amount, if you use cash and other of your friends or business partners use venmo. Moreover, if we talk about cash apps, you can also make transactions in the U.S. and the U.K. and venmo only offers its services in the U.S.

Summary

Lastly, winding up between the venmo vs Cash App it is hard to say which one is best because both apps hold a lot of similarities. You can use both apps to send and receive money. They are secure and safe for transactions. What makes these two apps apart from each other is that Venmo offers its services in the U.S. and Cash App offers its services in the U.K.

FAQs

Q. What are the disadvantages of Cash App?

Let’s have a look at some of the disadvantages of cash app. 

Not FDIC Insured
Demands 1.5% charges for instant fee
When using credit cards charge a 3% processing fee
Limited transfer when you use the app in 1st month. 

Q. What is Venmo best for?

Venmo is best for sending and receiving the amount from your friends and you can also split your shopping and dining bills. Transferring the amount is totally safe and secure and you can send money to any of your loved ones all over the U.S.

Q. Does Venmo charge a fee to receive money?

N, venmo does not charge a fee for receiving the money, but in that case, if you buy something and the sender flags the transaction. Then, you can give venmo 1.9% +10 cents on receiving the amount for payment with a business, personal, and charity account. 

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *