What is Venmo and why is it better than PayPal?

If you want to send money to someone quickly, you have many options. But the two most popular services used by more people than any other are PayPal and Venmo.

The main purpose of both is the same: to withdraw money from your bank account to another (or vice versa). However, the process for doing so is slightly different between Venmo and PayPal.

Even if you already know everything there is to know about PayPal, you may be wondering: What is Venmo and is it a better option than PayPal?

What is Venmo?

Venmo allows you to send money to someone instantly using a credit card, debit card, or your bank account. Many people don’t realize that PayPal owns Venmo. Venmo is essentially a simpler alternative payment service offered by the same company.

Adding payment details

Once you sign up for a Venmo account, all you have to do is add payment methods to start sending or receiving money. You can find it in the application menu below Payment Methods.

Just select Add a bank or card and fill out your account details on the form of payment.

Once you’ve added a payment, you’ll be able to start using the app.

Sending or requesting payments

From the app’s main screen, you can tap the Send Payment blue icon to create a new payment for someone or request a payment.

The other user will need a Venmo account so you can search for their Venmo username or ID to send the payment.

You just have to:

  1. Select the user to whom you want to send money
  2. Enter the amount
  3. Enter the reason for sending the money (optional)
  4. Set transaction privacy (Private, Friends, or Public)
  5. Select Pay (o Application) to request the amount from that person

You will see this transaction appear on the main page of the application. You can tap this transaction at any time in your history to view payment details.

Transfer money to your bank account

Whenever someone sends you money, you’ll see it appear in your Venmo balance. You can tap the button anytime you want Transfer balance link at the top of the menu to transfer money to your bank account or credit card.

The transfer balance page will show the full balance available for transfer. You can make an instant transfer to your bank or credit card for a 1% commission or allow it to take up to three days without a commission.

Get a Venmo debit card

You may have already heard of the Paypal debit card, which allows you to access your Paypal funds instantly to make payments at any offline or online store.

Now Venmo offers the same feature: the Venmo debit card.

You can register a touch Venmo card in the applications menu.

Just use the wizard to register. You can choose from 4 basic colors. It is a Mastercard debit card, so it works mostly in any business. It’s also a rewards card so you can earn points every time you use it, and there’s no credit check or associated monthly fees.

Venmo vs. Paypal: What are the differences?

You may have noticed that Venmo and Paypal have a lot in common. Apart from a very different user interface, the two services are very similar.

One of the main differences is that Venmo is almost like a payment service and a social network combined into one. You can add friends to the service, making it more convenient to send or receive payments from them later.

Fees and charges

There are a number of other differences, some slight and some significant. For example, here are the differences in rates.

  • Venmo charges 3% for credit card payments; PayPal charges 2.9% plus a fixed fee of $ 0.30.
  • No commissions for bank transfers with either service.
  • No commissions for debit card payments with Venmo; Paypal charges 2.9% plus a fixed charge of $ 0.30.
  • Venmo has a transaction limit of $ 4,999.99; Paypal only limits transactions to $ 10,000.
  • Withdrawing money from your bank is faster with Venmo, which only lasts 1-3 days. Paypal withdrawals can take between 3 and 5 days.

Which is more accessible?

You can access both services on the same platforms, including the mobile app, or on mobile or desktop browsers. There is a big difference you will notice when you do this visit Venmo in a browser and sign in to your account.

You won’t see any blue Send or Request button in the lower right corner, as you see in the app. This is because with Venmo you can only send or request payments through the mobile app.

You can use the website to review your transaction history, update your settings, or request a transfer to your bank account or credit card.

Also, Venmo is only available in the United States. On the other hand, PayPal is available for people from more than 200 countries.

Paypal is also more often accepted in many online and offline businesses.

Venmo, which is much more recent, is still settling.

Being able to pay for things directly in stores through these services means you won’t have to transfer money to your bank account before you can buy things with your balance.

Send money to people

Undoubtedly, the process of sending money to people with Venmo is much simpler and simplified. With the Venmo app, it’s really a quick three-step process with no options or other confusing options.

If the user has a Venmo account, enter the amount, a reason (if you want), if you want to share the transaction publicly, and you’re done. Your user will have to pay a fee to receive the money, but Venmo does not bother you with these details.

Paypal, on the other hand, has send, request, encryption and more buttons on the main page, mixed in with all sorts of cluttered information on the main dashboard. It is also not very easy to find the link to transfer money to your bank or credit card.

And once you select Submit, the process is not a simple form. It’s a step-by-step wizard that changes the following options based on your options and who you send money to.

The first step of the wizard seems simple enough.

But after selecting Continue, you’ll see details of the transaction that you can apparently change, such as currency, if you send to a friend, and with which account you send.

If you decide to change your account, you’ll see that you can use your Paypal account or send it directly from your bank account.

Why are there so many options with Paypal, while Venmo is such an easy 3-step process?

This is because Paypal is set up in more complicated commission structures depending on whether the payments are international and what is being paid.

For example, if you send money to a friend, you can choose to pay the fee or have the recipient pay it. Or you can choose to pay for goods or services, in which case the recipient must pay the fee and have it covered by Paypal Purchase Protection.

So on the one hand, Paypal can offer more features and options. But Venmo simplifies the entire transaction process by standardizing commissions and other details, allowing you to finish the payment process with just a few clicks.

Other considerations

Some other important differences to consider before choosing between Venmo and Paypal:

  • Paypal offers Buyer Protection peace of mind when shopping in a business.
  • Paypal offers business loans.
  • You can buy or sell cryptocurrencies with Paypal.

When comparing Venmo to Paypal, we used two full member accounts to examine the user interface, transaction process, features, commissions, and balance transfers.

Ultimately, Venmo and Paypal do the same. They both get money from your bank account or credit card and others. The difference is that Paypal is a little trickier to use, but it offers many more features and services.

Venmo is best for someone who doesn’t want to deal with bells and whistles and just wants a simple app to send money to someone as quickly and easily as possible.

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