The financial and banking sectors have always adjusted with new technological evolutions. To make the user experience safer and convenient, banks and financial institutions have taken digitalization very seriously. And, that has resulted in faster money transactions, instant approvals, international exchanges in seconds, and more.
According to Statista, in 2020, approximately 1 billion users used mobile payment methods globally. On the other hand, another Statista report states that PayPal crossed a threshold of 403 million users in the second quarter of 2021. Initially, in the first quarter of 2010, this threshold was limited to 83.3 million users globally.
However, Venmo is a payment app designed specifically for US citizens. According to a report, Its user threshold also crossed 52 million users in 2020, compared to 3 million users in 2015.
Now, as we are clear about the popularity of these transaction apps in the US, we thought of comparing both of the apps and pick one as the winner. So, we will discuss among Venmo or PayPal, which one is the best by going through their features and user opinion.
So, if you are intrigued, stick with us until the end of this blog!
What is the Venmo app and how does it work?
Well, before we proceed and discuss the question- which is better PayPal or Venmo, let’s have a look at the background of these peer-to-peer payment apps. Venmo was founded in 2009 as a splitting bills app. Andrew Kortina and Magon-Ismail are founders of the payment platform.
After its launch in 2009, the Venmo company has raised seed funds by RRE Ventures amounting to $1.2 million. Later in 2012, Braintree acquired Venmo for $26.2 million. But, PayPal later acquired Braintree for $800 million in December 2013 and became the owner of the Venmo app.
Now, apart from all the features that it has added, Venmo is also working towards making Venmo a Crypto trading platform as well. Now, to answer how does Venmo works- Venmo, one of the top payment apps, can be used to make payments via QR, contact number, e-mail, or username. However, both parties should have a Venmo account to complete the transaction made via the app. Venmo as a finance management app can also be used to split bills by adding users for different purposes like dinner bills, movie tickets, rent, and more.
What is PayPal?
Paypal was founded by Peter Thiel, Luke Nosek, and Max Levchin in 1988 as Confinity. Its initial business was developing security software for handheld devices. Later, it became the digital wallet. In March 2000, Confinity merged with Elon Musk’s x.com. Later, x.com got a new name and PayPal became public in 2002. PayPal was later in 2002 was acquired by eBay for $1.5 billion.
Like Venmo, PayPal also allows peer-to-peer payments with e-mails, contact numbers, or QR codes. However, PayPal takes care of the international markets which give it an advantage between Venmo or PayPal. Now, let’s have a look at the comparison between features of Venmo vs PayPal to find out which is better PayPal or Venmo?
Is PayPal or Venmo better?
To find out the answer to the question- how is Venmo different than PayPal or vice versa, let’s break down major features and discuss them.
Both Venmo or PayPal lets you send money through e-mail, contact number, or username. Moreover, both apps require the user to have an account on the apps. Now, the major difference between both apps is that Venmo is only available in the US. On the other hand, PayPal is spread across more than 200 countries and accepts payments in multiple currencies.
If you are wondering- is Venmo free? Yes, Venmo is free to make payments via debit cards or bank accounts. Instant transfers to your external bank or card account are payable with approximately 1% as the total fee. Moreover, payments via credit cards are chargeable as well. Venmo charges 3% for payments made by using the Credit Card.
On the other hand, PayPal also charges around a 1% fee for instant transfers to external bank accounts. Moreover, to send money with credit cards, PayPal charges 2.90% as the service fee. For instance, if you receive a payment from Upwork on PayPal, you will need to pay a small transfer fee to get this amount in your bank account.
3. Difference between Venmo and PayPal for businesses
For businesses, the major difference between Venmo and PayPal is that PayPal is more expensive and covers a larger market area. Venmo allows users to make payments on registered stores even by scanning the QR. However, PayPal offers much more options like invoicing, customized business debit cards, multiple currencies, dispute management, international customer care helpline, and more.
If you are wondering- are Venmo and PayPal the same in any way? Yes, both payment apps are available on almost the same platforms. You can install Android and iOS apps for Venmo or PayPal. Moreover, PayPal also can be used on a mobile web browser.
App download links Venmo vs PayPal
Well, these were the points that needed to be mentioned to answer the question- how is Venmo different than PayPal, the app developed by one of the top app development companies? Now, to choose the better app from both options, it is easy to say that PayPal takes the lead. It’s not only extensive in its market coverage but also makes international payments easier. PayPal is a one-stop destination for easy conversion of currencies as well. Thus, international payments get way much easier.
- Is PayPal safer than Venmo?
Both payment apps offer tight security standards to secure user information. However, PayPal has a bigger team dedicated to improving its security standards by upgrading it continuously with the latest trends.
- Are Venmo and PayPal the same?
Even though Venmo is owned by PayPal, both apps are different. Venmo is only available in the US and you can download it separately.
- Why is Venmo better than PayPal?
Venmo is better in the US compared to PayPal as it is used by more merchants and retail stores. Thus, making payments via Venmo is much easier in the US.
He is responsible for marketing programs, brand management, and corporate sponsorships. He thrives on challenges, particularly those that expand the company’s reach. Next to work, Shadow, his dog, immensely contributes to his happiness.
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