Peer-to-peer (P2P) mobile payment apps have become quite popular among consumers in the US because they are fast, secure, and convenient.
Currently, Cash App and Venmo are some of the two top peer-to-peer platforms. But which is the better one between the two? Here’s all you need to know!
Is Cash App or Venmo Better in 2023?
Both Cash App and Venmo are peer-to-peer mobile payment apps widely used to send and receive money via a smartphone device in 2023. Although these two financial platforms have some similar features and services, they have some differences because they’re operated by different companies. Therefore, you should consider these features when choosing the best option that meets your needs.
If you’re looking for an ideal mobile payment app, read on for more information about how Cash App and Venmo compare to help you choose!
What Is Cash App?
Cash App is a money transfer app that was launched in 2013 as Square Cash by block Inc., formerly known as Square Inc.
This peer-to-peer payment app allows customers to send, receive money, and invest in Bitcoin and stocks without going to the bank.
Cash App isn’t a bank but a financial platform. However, it provides its services through bank partners.
Therefore, if you have a Cash Card, your balance is insured by the Federal Deposit Insurance Corporation (FDIC).
In addition, the Cash App investment services are also registered with regulatory bodies such as the Security Exchange Commission (SEC).
As of 2021, Cash App had 44 million monthly active users and generated $12.3 billion in revenue, most of it from Bitcoin trading.
On average, about 13 million people have a Cash App card.
How Does Cash App Work?
Once you download Cash App from Google Play or the App Store, you can create an account using your email address and phone number.
As well, Cash App allows you to create a unique $Cashtag that you can share with your family and friends who want to send you money.
Once the account is set up, you can provide personal details to get it verified and start sending and receiving money.
When you create a Cash App account, link it with a bank account, which you can use when you need to cash out and withdraw money from your bank.
Additionally, Cash App issues Cash Cards, which work as debit cards. You can withdraw money from the ATM and pay for items in-store and online using these Cash Cards.
What Is Venmo?
Like Cash App, Venmo is a peer-to-peer mobile payment app that allows users to send and receive money.
Founded in 2009, Venmo was acquired by Braintree, which PayPal later took over. With Venmo, you can split necessities such as rent, groceries, and other utilities and send a gift.
As of 2021, Venmo had more than 70 million active users and recorded annual revenue of $850 million.
How Does Venmo Work?
To use Venmo, download the app from Google Play or App Store. Once you set up a Venmo account, you can request or send money via the app.
Other Venmo users can identify you via your username when they need to send you money.
Venmo is more social, and you can leave your account public so your friends can see your transactions.
Apart from receiving and sending money, Venmo users can also trade in cryptocurrency.
Cash App Vs. Venmo: Which I Better?
Here’s how Cash App and Venmo compare:
With both Venmo and Cash App, users can send and receive money. Therefore, you can use them to send money to individuals, merchants, and online businesses.
Additionally, Cash App allows stocks and Bitcoin trading. However, with Venmo, you can only purchase cryptocurrencies like Bitcoin, Litecoin, Ethereum, and Bitcoin Cash for as little as $1.
Venmo allows users to invest in more cryptocurrencies; therefore, it might be the best choice if you need more options. However, Cash App offers stock investing.
Cash App offers a debit card known as the Cash Card, while Venmo has both a debit and credit card for its users.
Both Cash App and Venmo don’t charge any fees to send money to a linked bank account; therefore, they are ideal if you need to make any transfers.
However, Cash App charges a 0.5% – 1.75% fee on Instant deposits if you want your transfers to arrive instantly.
On the other hand, Venmo charges 1% -5% for faster transfers on cashed checks.
At this time, both Cash App and Venmo will charge you a 3% fee on the transfer if you want to send money using a credit card.
Overall, the fees vary for each service so that you can choose the best option depending on your needs.
Cash App is only available in the US and the UK, which means you can’t use the service internationally.
However, Venmo is only available in the U.S., and you have to use other payment options in other regions.
With both Cash App and Venmo, users can receive funds via direct deposits, bank transfers, and debit and credit cards. Venmo has an added service because it accepts funding via checks.
To know more, you can also read our posts on how much money you can send through Cash App, what time Cash App deposits, and what are Cash App Boosts.
Both Cash App and Venmo are peer-to-peer mobile payment apps widely used to send and receive money via a smartphone device.
Although these two financial platforms have some similar features and services, they have some differences because they’re operated by different companies. Therefore, you should consider these features when choosing the best option that meets your needs.