Going cashless allows you to transfer money without having to deal with currency, mail checks, or visit the bank.
With a smartphone and an app, certain internet companies have made it easy to transfer and receive money nearly instantly from anywhere.
Peer-to-peer money transfer applications like Cash App and Venmo allow you to send money with just a few clicks of your screen.
The most popular money apps are Cash App and Venmo. At first look, they may appear to be interchangeable.
Both applications provide essentially identical services, but each has its own set of features as well as advantages and disadvantages.
Continue reading to understand more about the differences between Cash App and Venmo.
IS CASH APP THE SAME AS VENMO
Cash App is a peer-to-peer (P2P) money transfer app that lets you send and receive money.
You can use the platform to not only send and receive money, but also to earn incentives, receive your paycheck; make online and in-store payments using a cash card, trade-in stocks, and buy Bitcoin.
You may send money to your friends and family for free with Cash App. You can also use a debit card to make purchases, move money to your bank account, get merchant discounts, invest in stocks, and trade Bitcoin.
Cash App currently has 24 million active users, according to the most recent data from Business Insider.
How Cash App Works
Cash App allows you to send and receive up to $1,000 per month in spending limits. You can increase your limit by establishing your identification with your name, date of birth, and social security number’s last four digits.
Here’s how to get going:
Create an account with Cash App by entering your phone number or email address. When you want to transfer or receive money, the app will let you choose a $Cashtag, a unique identification that you may share with your family and friends.
All you need is the receiver’s email address, phone number, or $Cashtag to send money.
Following the entry of the recipient’s details, the app will prompt you to take funds from your Cash App balance, linked bank account, or credit card.
When you get money, it is automatically deposited into your Cash App account, from which you can withdraw monies to your associated bank account or debit card. You can also just keep track of your Cash App balance.
Your cash card has a daily spending limit of $7,000 and a weekly spending limit of $10,000. You have a monthly spending limit of $25,000. The cash card has withdrawal limits: $1,000 per transaction, $1,000 per day, and $1,000 per week are the maximum amounts you can withdraw at an ATM.
How Venmo Works
Venmo, on the other hand, lets users send and receive money from anyone who has a Venmo account.
This app Venmo makes it simple to divide restaurant bills or share the cost of items with your buddies.
Venmo is a social network that allows you to send money to friends and family without paying a commission.
Emojis can be used to spice up your payments, and you can see what your friends are doing with their funds. Venmo, like Cash App, provides a debit card, merchant discounts, and bank account transfers. Venmo now has 40 million users, according to CNBC.
Acquiring and transferring payments into your bank account, as well as sending money using your debit card, prepaid card, linked bank account, or Venmo balance, are all free with Venmo.
Here’s how to get going:
To get started, create a Venmo account. This can be done using the app’s website or mobile app.
Make a mental note of your phone number, email address, and bank account information.
Both the sender and the receiver must have a Venmo account to send and receive money.
You can link your bank account to Venmo and then withdraw funds if you don’t have a balance.
If the receiver doesn’t already have a Venmo account, they’ll be labeled a “new user” who will need to create one to take the funds. Venmo users have the option of keeping their amount or transferring it to a checking or savings account.
SIMILARITIES BETWEEN CASH APP AND VENMO
They have the most convenient way to send and receive money and sending payments from both your Cash App and Venmo balance or linked bank account costs you nothing. Both platforms support the iOS app, an Android app, and a browser.
Bank account, credit cards, debit cards, Google Pay, and Apple pay are all examples of payment methods that are accepted by Cash App and Venmo, and there is a 3% fee if you send money with a credit card.
A bank account, a debit card, a mobile wallet, and an ATM are all options available for payment on both platforms.
DIFFERENCES BETWEEN CASHAPP AND VENMO
|Fees||For instant transfers, the fee is 1.5%.||For instant transfers, there is a 1% fee.|
|Used For||Purchasing Bitcoin and investing in stocks||Accepting payments via direct deposit|
|Using a debit card to make purchases||Those that desire to maintain their digital wallet balanced.|
|Limits||You can borrow up to $1,000 each month; you can raise your limit by proving your identification.||Weekly rate: $299.99 – $4,999.99 (verified) and a weekly spending cap of $6,999.99 is in place.|
|The rate of transfer||Regular deposits take one to three business days.||A 1.5% fee is applied on instant deposits.|
|Free withdrawals take one to 3 business days.||At 1%, immediate transfers are available.|
|Does it encourage international transfers?||Yes||No|
PROS AND CONS OF USING CASHAPP AND VENMO
Although both Cash App and Venmo may transfer and receive money from almost any bank account in the United States, each has its own set of advantages and disadvantages to consider.
Pros and Cons of using CashApp
|Transferring money for free||Not covered by the FDIC.|
|Purchases can be made with a debit card if one is available||A transaction cannot be revoked once it has been confirmed.|
|Investing in equities or Bitcoin is an option.||Investing prospects are limited.|
|If you can wait for one to three business days for availability, transfers to your bank account are free||Cash App accounts are required for recipients.|
|To invest in stocks, you can open a brokerage account.||Instant credit transfers to your bank cost 1.5 percent of the amount transferred, with a minimum of $0.25.|
|With the Cash App Boost program, you can get discounts from certain retailers.||There is no phone number to call to speak with a real representative if you have an issue.|
|If you set up direct deposit, such as for your paycheck, you get free ATM withdrawals.||If you don’t have a direct deposit set up, ATM withdrawals cost $2 plus network fees.|
Pros and Cons of using Venmo
|Money transfer that is both quick and free||A transaction cannot be undone once it has been approved.|
|You have the option of keeping a balance in your account.||Not covered by the FDIC.|
|Payments via social media||Fraud is a possibility|
|Any merchant that accepts MasterCard can accept the Venmo debit card.||Transfers made with a credit card will cost you 3%.|
|Venmo Rewards is a program that gives you discounts on specific stores’ products.||A fee of 1% will be charged for instant transfers from your Venmo account to your bank account, with a maximum fee of $10.|
|When you have a query, you can speak directly with a customer support representative, unlike with Cash App, where you must write an email and wait for a response.||Only able to send money to people who have a Venmo account.It’s only available in the U.s; it’s not available anywhere else.|
CASHAPP vs. VENMO, WHICH IS THE BETTER MOBILE PAYMENT METHOD?
At first look, Cash App and Venmo appear to be interchangeable, but they provide quite different services.
One of the biggest distinctions is Cash App’s extensive list of features, which includes the ability to purchase and sell equities as well as Bitcoin.
Venmo concentrates solely on sending and receiving money, and it does it successfully, but Cash App may be a better choice for consumers looking for more versatility in a single app.
Because they’re accessible, simple to use, and mainly free, Cash App and Venmo are among the most popular mobile payment apps in the United States.
Both apps make sending and receiving money far more convenient than before. Switching to either app is nearly a no-brainer because they both have millions of users and are accepted by numerous companies.
They might not be flawless. Cash App, like Venmo, has its fair share of security concerns. Both mobile payment apps, on the other hand, have stated that they are continually working to improve their safety and security features. It’s now entirely up to you to decide which of the two you should use.
You can download both if you want to have a better idea of which app you prefer. It also makes sending and receiving money much easier if the individual with whom you’re trading just has one app.
When utilizing either of these programs, though, remember to be extra cautious. You’ll be able to prevent fraud and keep your money safe this way.
PayPal owns Venmo, a mobile payment service. Venmo account holders can send cash to other Venmo account holders via a mobile application; both the sender and the receiver must be based in the US.
A typical Venmo scam involves a criminal asking you to transfer them a little amount of money in exchange for a greater sum. You will very certainly never receive any money back, whether the request comes from a stranger or someone you know.
In the United States, both Cash App and Venmo are peer-to-peer payment apps that allow you to send money to friends, family, and trustworthy businesses without incurring large fees. Both are equally safe to use if you follow some fundamental personal financial principles.
You can continue to accept money from other Cash App users anonymously by using any name in your Cashtag id. You can send and receive money from your contacts on Cash App without giving your phone number, email address, bank account information, or card number in this way.
When you link your bank account and debit/credit card to your Venmo account, you risk giving cybercriminals access to your bank account’s funds. Only link your Venmo account to a credit card to eliminate this danger. The sad fact is that when you use your credit card to make a transfer, Venmo will charge you 3%.
Both Cash App and Venmo are excellent peer-to-peer money transfer platforms.
Cash App has additional capabilities that allow you to invest in stocks, buy Bitcoin, and get direct payments in addition to transferring and receiving money.
Venmo, on the other hand, may be more suited to your needs if all you want to do is send and receive money.