venmo vs Paypal

Venmo vs PayPal – Speed, Security & Fee

Venmo is owned by PayPal and both apps have a lot of similar features. You can use these two apps to make the transactions quickly. What makes these 2 apps apart from each other is you can send the amount using PayPal Worldwide and Venmo only sends amounts in the United States. 

However, many other features such as fee or rate structure, authentication, security, and transaction speed make a big difference in both apps. Let’s discuss these apps and make the difference between Venmo vs PayPal. 

Also Read: Venmo vs cash Pay

How and When PayPal Owned Venmo?

In 2013, PayPal owned Braintree for about $800 Million, which is a parent company of Venmo. So, as a part of the deal purchasing Braintree, PayPal indirectly became the owner of Venmo.

Overview and Background – venmo vs Paypal

Let’s take a look at the overview and Background of Venmo vs PayPal:

Venmo:

Venmo allows its users to send money and request funds. On a daily basis, Venmo sends millions of transactions to people in the U.S. It doesn’t support transactions outside the U.S. This app is designed to send the amount; once the payment is sent, there is no way to refund it. 

PayPal:

PayPal is a multinational financial company that offers transactions all over the world. It was established in 1998 and was first known as Confinity. Now, PayPal has become the most popular brand in the world of digital transactions. More than 300 Million Freelancers, Retailers, and Business Owners use PayPal to send, manage, request, and spend funds online.

Venmo FeaturesPayPal
2009 Launched2017
Easy to Understand InterfaceComplicated than Venmo
App Store Google Play StoreAvailabilityApp Store Google Play StoreWindows
App Store: 453.5 MBGoogle Play Store: 82 MBDownload SizeApp Store: 80 MBGoogle Play Store: 76 MB
Free Transfer: Within 1-3 business daysInstant Transfer: Charge additional chargesTransaction SpeedFree Transfer: Within 1 – 3 business daysInstant Transfer: Charge additional charges
Two-Factor AuthenticationAuthentication and SecurityUse authentication and security features to secure payment.
For Instant require a 1.75% FeeWithin 1-3 business days require no fee.Payments or Fee StructureDepends Upon the Transactions
NoReverse Payment No
Only in the U.S.Offer Services All over the world.

You can check how venmo works with paypal for tresections here: https://venmoapp.info/how-does-venmo-works/

User Interface

Let’s navigate the user interface of Venmo vs PayPal that makes the difference between these two payment apps. 

Venmo:

The user interface of Venmo is much easier to understand than PayPal. You can easily navigate all the tabs and your transactions. Even if you are a new user of Venmo you can easily send and receive money with just a few clicks. Venmo offers some of the additional features that PayPal doesn’t offer.  

PayPal:

The user interface of PayPal is a little bit more complicated than Venmo. There are a lot of tabs and options that might confuse the new users. It is not easy for new users to quickly understand all about the PayPal interface because of its complex design.

Transactions Speed

Have a look at the transaction speed of Venmo and PayPal apps. 

Venmo:

Venmo is considered a little bit slower than PayPal. Venmo can transfer your amount within 1 to 3 business days if you want to send the amount without any additional charges. However, if the user wants to transfer the amount instantly then, they have to pay some of the additional charges which is 1.75%. 

PayPal:

PayPal doesn’t charge any amount if you transfer your amount within 1 – 3 business days but if you want to send the money instantly, then you have to pay 1.75% of the money from your PayPal account. 

However, to PayPal Payments, the slowest transfer speed is applied which is needed to withdraw funds from a linked bank account, then, this process can take almost 3 to 5 business days. From both apps, PayPal is considered the fastest and quickest app to transfer money.

Fee or Rate Structure

Surely, the fee structure of both apps is different from each other. Below check out the fee or rate structure of Venmo vs PayPal. 

Venmo:

As Venmo does not offer international transfer services and only makes transactions in the United States. However, the fee structure of Venmo is also a little bit different from PayPal. 

Payment TypeRate
Payment sent to your business account1.9% + $0.10 on every seller transaction
For Contactless Payment 2.29% + $0.10 on every seller transaction
Venmo

PayPal:

PayPal Fee structure is more complicated than Venmo. PayPal doesn’t charge any type of fee for getting a card or setting up an account. If your bank account is linked with a PayPal account, then there is no fee applied for transactions. However, if you use a debit and credit card then, PayPal Applies a 2.9% fee. 

If you link your American Express credit card with your PayPal account, PayPal does free transactions. However, here are some of the standard rates for receiving domestic transactions over PayPal.

Payment TypeRate
Alternative Payment MethodRates Apply
QR code Transactions2.29% + Fixed Fee
Pay with Venmo3.49% + Fixed Fee
PayPal Checkout 3.49% + Fixed Fee
Credit/Debit card payment 2.99% + Fixed Fee
Send / Receive Money2.99%
PayPal Guest Checkout3.49% + Fixed Fee
QR Cide transactions with the help of other 3rd party integrators 2.29% + 0.09 USD
All Other Commercial Transactions3.49% + Fixed Fee
PayPal

Authentication and Security

Below, have a look at the authentication and security measurement of the Venmo and PayPal apps. 

Venmo:

To protect your data and financial information, Venmo uses data encryption. Venmo makes sure that all the financial and personal details of its users are protected. Moreover, to enhance security, Venmo uses Two-factor authentication and PIN code. All of these additional features can secure all of your information.

PayPal:

PayPal offers higher security than Venmo, to keep all of the transactions secure and protected, PayPal uses the latest encryption technology such as PIN Code, Touch ID, and Security Questions. If you receive any type of link or email that demands your password never share it, PayPal will never ask about your password. PayPal protects your account by using Biometric Authentication and Two-Factor Authentication.  

Which one is more secure: Venmo vs PayPal?

After comparing both apps, I would like to say that PayPal is more secure because it offers some additional security measurements than Venmo. Both the app has a lot of similarities as Venmo is also owned by PayPal but PayPal provides transactions all over the world. 

However, when you use Venmo you can only transfer the amount in the U.S. To get access to your Venmo you have to enter the PIN Code and on the other hand, PayPal also asks you PIN Code, Touch ID, and some Security Questions. 

Which one is better for small businesses Venmo or PayPal?

PayPal is the best option for your business because if you use your PayPal account, you can make transactions all over the world quickly and safely. However, if you use Venmo, you can only send the amount in the United States because it does not support international transactions. 

Final Remarks:

At the last of the discussion between Venmo vs PayPal, it is right to say PayPal is the best option for your transactions because it offers more features than Venmo. You can make worldwide transactions and send money wherever you want. On the other hand, Venmo only offers its services in the U.S. However, Venmo is also a good option if you want to send money to your friends or pay your bills. 

FAQs

Q. Why do people use Venmo instead of PayPal?

People use Venmo instead of PayPal because they think it is easy to use. They make fast transactions and send money to their friends quickly using Venmo.

Q. Which is more secure Venmo or PayPal?

PayPal is considered more secure than Venmo because it offers some additional security features. 

Q. Is there a downside to Venmo?

One thing about the downside of Venmo is, that all of your transactions are public by default, everyone can see how much you send the amount and to whom you send it. However, if you talk about any technical issue, at that time, I didn’t see any type of technical issue or glitch with Venmo. 

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