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Venmo vs. PayPal
We look into the fees and features of these two popular money transfer services, as well as how easy they are to use.
Venmo and PayPal are both digital wallets with many similar features. One of the main differences between PayPal and Venmo is that PayPal is more widely used by businesses, while Venmo is used for transactions between friends, family members and people you know. Sending money with Venmo has slightly fewer steps, but transactions sent through PayPal have payment protection in certain scenarios.
Although Venmo and PayPal have similar features, each has its own pros and cons to consider.
We recommend Venmo for:
- Displaying your transfers in a social newsfeed
- Adding emojis and messages to your transfers
- Connecting your contact list to remove the “what’s your username?” question from the equation
We recommend PayPal for:
- Using your PayPal.Me link to request transfers in a text message
- Combining all of your global sending needs in one application
- Paying businesses or making purchases online
Venmo and PayPal are both a part of the same company, but their diverse uses draw different types of users. Both are free, however, so taking the time to try out both Venmo and PayPal may help you figure out which service is best for you.
Breakdown of Venmo vs. PayPal
Venmo |
PayPal |
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|---|---|---|
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| OVERVIEW | ||
| Description | Pay and request money to both friends and businesses through this peer-to-peer, socially driven payment app. | Friends and Family is a free way to send and request money in the US, with fee-based options for international transfers. |
| Supported devices | iOS app Android app |
iOS app Android app Browser |
| Ways to pay | Bank account Credit card Debit card |
Bank account Credit card Debit card |
| Ways to receive | Bank account Debit card Mobile wallet ATM |
Bank account Mobile wallet |
| Customer support | Email Live chat |
Phone |
| SPEED | ||
| Fastest transfer speed | Instant | Instant |
| Free withdrawal speed | Up to 3 business days | Up to 3 business days |
| LIMITS | ||
| Maximum amount you can send per transfer (unverified account) | $299.99 | $10,000 |
| Maximum amount you can send per transfer (verified account) | $4,999.99 | $10,000 |
| Supports international transfers? | No | Yes |
| FEES | ||
| Fees to send money | No fees | By bank account: No fee |
| Instant withdrawal fee | 1% | 1% |
| REQUIREMENTS | ||
| Bank account required? | No | No |
| Learn more |
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Summing up Venmo vs. PayPal
Overall, Venmo is the more straightforward option if you are just looking for a way to pay friends back after sharing a meal at your favorite restaurant. However, if you already have a PayPal account and your friends do as well, there’s really no need to make the switch to Venmo.
If you need to send money internationally, PayPal can work but isn’t necessarily your best option — learn about the alternatives by reading our guide on sending money.
Compare other services that send money within the US
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