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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.

Zak Killermann

Updated Dec 15, 2020

Fact checked

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

	Read review	Read review
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 Email
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 By credit/debit card: 2.9% + fixed fee
Instant withdrawal fee	1%	1%
REQUIREMENTS
Bank account required?	No	No
Learn more	Read review	Read review

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

Name	Fees	Fastest available transfer speed	Maximum transfer amount (verified)
Zelle	To send: No fees To receive: No fees	Instant	Varies	Supported banks enjoy direct bank-to-bank transfers with the tap of a button.	View details	loading Fetching your data...
Cash App	To send: No fees To receive: 1.5% for instant withdrawal	Instant	$2,500	Split the bill, pay your friends, buy and sell cryptocurrency and even spend money through a connected debit card.	View details	loading Fetching your data...
Google Pay	To send: No fees To receive: No fees	Instant	$10,000	Google’s take on money transfers — use this free service to quickly send and receive funds in a variety of ways.	View details	loading Fetching your data...
PayPal	To send: By bank account: No fee By credit/debit card: 2.9% + fixed fee To receive: 1% for instant withdrawal	Instant	$10,000	Friends and Family is a free way to send and request money in the US, with fee-based options for international transfers.	View details	loading Fetching your data...
Venmo	To send: No fees To receive: 1% for instant withdrawal	Instant	$4,999.99	Pay and request money to both friends and businesses through this peer-to-peer, socially driven payment app.	View details	loading Fetching your data...
Walmart	To send: Starting from $4 To receive: No fees	Instant	$2,500	Send and receive money at any Walmart in the US and Puerto Rico. Transactions can also be sent from the Walmart app.	View details	loading Fetching your data...
Apple Pay	To send: No fees To receive: 1% for instant withdrawal	Instant	$10,000	Pay and get paid directly through iMessage, but you’ll need an iOS device to use this payment service.	View details	loading Fetching your data...
Facebook Messenger	To send: No fees To receive: No fees	Instant	$9,999	Connect a debit card or PayPal account to send money directly to friends through Facebook’s messaging service.	View details	loading Fetching your data...

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Zak Killermann

Zak Killermann is a writer at Finder. He’s ghostwritten hundreds of articles on fintech, finding his love for publication at St. Cloud State University. Traveling internationally for nearly half his life — and getting burned once by an OTC money exchange — Zak's vowed not to settle for anything short of the mid-market rate again.

Google Pay Cash App vs. Venmo

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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.

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