Is Cash App or Zelle Better? (All You Need to Know)

Over the past few years, the banking industry has significantly evolved, with payment apps becoming more popular.

Cash App and Zelle are among these popular peer-to-peer payment apps. If you are looking for an ideal payment app to use, you need to know how they compare. So, which is better, Cash App and Zelle? Here’s all you need to know.

Is Cash App or Zelle Better in 2024?

While Cash App and Zelle are both peer-to-peer mobile payment apps, they have some differences in 2024. With Zelle, all the money you receive goes straight into your bank account, while Cash App allows customers to send money even without a bank account. Also, Zelle is supported by most U.S. banks and is only restricted to American users.

Keep reading to learn more about how Cash App and Zelle compare, how each platform works, and other related facts!

What Is Cash App?

Cash App is a mobile payment app that is free to download on the Apple Store and iOS.  

Launched in 2013 by Block Inc., this app allows users to send, receive money, and invest in Bitcoin and stocks.

You can make payments to Cash App using your bank account, debit card, credit card, Apple Pay, or Google Pay.

As of 2021, Cash App had 44 million monthly active users and had total revenue of $12.3 billion.

When you get an account, you can order a debit card, known as the Cash Card, that you can use to draw funds and purchase goods and services.

Account balances for the cardholders are insured by the Federal Deposit Insurance Corporation (FDIC).

How Does Cash App Work?

To get started, you need to download Cash App from Google Play or the App Store and create an account using your email address and phone number.

Also, you need to create a unique $Cashtag that you can share with your family and friends who want to send you money.

You can start sending and receiving money immediately. However, if you’re unverified, Cash App limits the amounts.

Also, you can link the Cash App account with a bank account, which you can use when you need to cash out and withdraw money from your bank.

What Is Zelle?

Zelle is a payment app that’s free to download and use. Launched in 2016, Zelle is a great way to send money to your friends and family, even if they use a different bank.

When you use Zelle, this app transfers money from one bank account to another. It’s available in most banking apps; therefore, you need to confirm first whether your bank has it.

Zelle allows payment transactions between users and businesses as long as the small business is registered as a Zelle partner.

This payment app is present in over 1,000 banking apps, making it easy to process payments and transfer cash.

How Does Zelle Work?

To get started, you need an email or a U.S. mobile number. You can send money by adding the recipient’s email address or phone number.

With Zelle, you can send money to people you trust, provided they have a U.S. bank account. If the recipient’s bank supports Zelle, they can accept the payment via their banking app.

Cash App Vs. Zelle: Which Is Better?

So, which is the best payment app between, Cash App and Zelle? Here’s the comparison based on their individual features:

• Sending and Receiving Money

Both Zelle and Cash App allow customers to send money, and the processes are quite similar.

To send money on both apps, you need the recipient’s phone number and email address; the only difference is that with Cash App, you can use the $Cashtag. 

Therefore, Cash App has more options.

• Limits

If your bank supports Zelle, the limit will be based on the bank’s limit. However, if they don’t, the limit will be capped at Zelle’s weekly limit of $500.

On the other hand, Cash App limits depend on whether your account is verified or not. If you are unverified, you can send up to $250 every 7 days and receive $1,000 every 30 days.

However, you can increase the limits by verifying your account. The limit will go up to $7,500 every 7 days.

• Fees

One of the biggest advantages of Zelle is that it’s free to use. You won’t be charged a fee to download the app, or send and receive money.

However, it’s advisable to double-check with your bank to confirm if there are any fees on withdrawals or transfers.

On the other hand, Cash App is free to download. However, if you want to cash out money instantly, you will be charged a 0.5%-1.75% fee on the amount.

Additionally, Cash App charges $2-$2.50 to withdraw money from the ATM. Also, if you send money via a credit card, you’ll incur a 3% charge.

If you are looking to avoid charges, Zelle looks like the best option.

• Geographical Coverage

Cash App works in the U.S. and the UK; however, the transactions are limited domestically; therefore, you can’t send money between the two countries.

On the other hand, Zelle is only available in the U.S. because users need to have a U.S. bank account and phone number.

To know more, you can also read our posts on how to use Cash App without a card, how to send money on Cash App without verification, and how to link Cash App with Plaid.

Conclusion

While Cash App and Zelle are both peer-to-peer mobile payment apps, they have some differences.

With Zelle, all the money you receive goes straight into your bank account, while Cash App allows customers to send money even without a bank account. Additionally, Zelle is supported by most U.S. banks and is only restricted to American users.