Cash app vs Venmo – What,s the Difference Between Cash App & Venmo

Let,s see the difference between Cash App vs Venmo. Exponential growth has been observed in online payments in the past few years. Now we have two major digital P2P applications Venmo and Cash app. Both of them have their own benefits and demerits. But here we will have a thorough comparison between Cash App vs Venmo.

Cash app vs Venmo – A Thorough Comparison

What is Cash App?

Basically, Cash App is one of the P2P applications which is used to send and receive money from different people by using your smartphone.

Now you may ask who the cash app is different from or why we should choose the Cash app over other digital wallets.

The reason is that the cash app provides some features that are not available in other digital wallets. The cash app allows you to invest in Bitcoin directly and offer an excellent tax payment feature.

How Does Cash App Work

Cash app also allows you to set up direct deposits to make Cash App payments via tax refunds or paychecks. However, it requires identity verification.

To verify your cash app account you need to enter your personal details like your real full name, DOB, and the last 4 digits of your SSN. When you will submit this information it will also allow you to increase your spending and transfer limits.

You can also get a Cash app card which is the same as a debit card. This cash card makes it easy for you to make online transactions. Cash app accounts do not have any kind of minimum balance requirements and fees to perform a transaction.

But it does charge a 3% fee to make transactions through a credit card. Moreover, Cash App also accepts the tax funds and deposits directly to your cash app account balance.

Generally, the cash app funds are completely secure because they use the same technology which is used by the top banking companies. The cash app is not FDIC insured. This means in case of funds missing you will not find any method to recover them.

Furthermore, it also provides you with a direct method of Bitcoin trading. Cash App offers limited research and analytic features. It could be one of the best methods if you want to start investing in Bitcoin or Crypto.

Pros

  1. Bitcoin Investment Feature
  2. Availability of VISA Debit Card
  3. Free Payment Transfers
  4. The cash app has the ability to accept and pay Taxes.

Cons

  1. Limited options for Trading
  2. Cash app is not FDIC insured

Cash-app-vs-Venmo - CashToApp

What is Venmo?

Venmo is also one of the major P2P applications like the Cash app. You can also get a Venmo debit card which makes it easy for you to send and receive payments.

One can use the Venmo card at any store whether MasterCard payments are accepted. That is one of the easiest methods to buy cryptocurrency because it features a dedicated tab for cryptocurrency trading.

How Does Venmo Work?

There are a number of different methods to add funds to your Venmo account like direct deposits, checks, and bank transfers. But these functions require you to have a Venmo debit card.

The process of signing up for a Venmo account is completely free. You just need to verify your identity. After identity verification, you will receive your cash app card in just a few days.

To use the basic features of the Vemo you don,t need to verify your ID. But it still allows receiving funds from Venmo accounts which are non-verified.  If you have a verified Venmo account you can fund Vemo with the help of checks. Your funds may take up to 10 days to display in your Venmo account. 

To fund your Venmo account with a credit card will charge a 3% fee but all other kinds of transfers are completely free. Venmo is not FDIC insured same as the Cash app. But good thing is that Venmo is owned by Paypal and they have some excellent security measures in place.

The social networking aspect of Venmo differentiates it from other digital wallets. On the social tab of the Venmo, the payments send and received from the Venmo will be shown as messages. Overall Venmo is one of the most famous P2P apps and one of the best ways to send money to your family and friends.

Cash-app-vs-Venmo - CashToApp

Pros

  • Check Deposits are Accepted By the Venmo
  • It has a social aspect to Transactions
  • Funds Transfer is completely free
  • It offers a MasterCard debit card to it,s users.

Cons

  • Transactions are social which means they can be seen by the general public
  • Venmo is not FDIC insured

Cash App vs Venmo: Fees

There is a similar kind of structure for both  Venmo and Cash apps. All kinds of transactions are completely free except credit card transactions.

Moreover, both of them will charge a meager amount of fee for an instant deposit. But the standard transfers do not charge any fees and it may take from 1 to 3 days of time. 

Venmo: Venmo will charge a 3% fee when you will send a payment using a credit card. Moreover, it also charges a 1% instant transfer fee as well.

It will just take a few minutes of time to send money from your Venmo account to your bank. All kinds of standard payment transfers are free and they may take about 1 to 3 days of time to display in your bank account balance.

Cash App: If you want to use a credit card on the Cash app then it will charge a 3% fee. However, it,s completely free to send money from your debit card to the bank account.

If you want to make an instant transfer from your cash app account it will charge a 1.5% fee. However, the standard transfers are completely free.

Cash-app-vs-Venmo - CashToApp

Cash App vs Venmo: Special Features

Cash app and Venmo work quite the same when it comes to sending and receiving payments from others. But if you want to differentiate them then you can decide on the basis of their extra features.

The payment transfer approach of Venmo is social. Venmo shows a social feed about your transactions. Although it does not show how much money you send or receive it shows you to whom you are sending or receiving payments. It displays the transaction date and caption.

You are also allowed to comment on a specific transaction. You can make your transactions history public by adjusting your privacy settings.

Cash app transactions do not have a social aspect. But it provides you with a number of different options for investing.

Cash app allows you to directly invest in stocks and Bitcoin. You will find a number of famous stocks on the Cash app for investment. The people who want to get into the stock mark it would be a great option.

Cash App vs Venmo: International Availability

Cash App and Venmo both have a large user base in the USA but they are not available internationally. However, the Cash app allows non-US users as it is available to use in the UK as well.

Venmo: Currently Venmo is only available in the USA. This means both sender and receiver need to be present physically in the USA to make a transaction through Venmo.

Cash App: You can only use the Cash app in the UK and USA. That,s why people from both of these countries can send and receive money from each other without any charges. If you want to send a payment to another country cash app will automatically convert it into the local currency.

Cash App vs Venmo: App Store Availability

Venmo and Cash App both work well on smartphones Android and iPhone. They are also accessible through mobile and desktop browsers.

Venmo: Venmo is available to download on both the Google Play Store and Apple App Store. You can also download it by accessing Venmo.com.

Cash App: The cash app is also available on both the Apple App Store and Google Play store. Furthermore, you can also access it via the Cash App website and download it.

Cash App vs Venmo: Physical Payment Cards

Both Venmo and Cash apps provide physical cash cards which help to turn these applications into functional bank accounts.

Venmo: Venmo provide a debit card which directly linked to your Venmo account. The Venmo card also supports contactless payments. You can get a Venmo card for free of cost. It also does not have any kind of ATM withdrawal fees. Qualified Venmo users can also get a VISA credit card. ON every purchase you will get a 6% cashback.

Cash App: The cash app also offers a Cash Card. If you have a cash app card you can use it to buy things from your favorite restaurants and retailers. Direct deposits are also supported by the Cash app. A cash app debit card does not charge any fee.

Is Venmo safer than Cash App?

We can,t say it necessarily. Because Venmo and Cash app both are P2P payment services provider applications. As their services involve sending and receiving payments they are inherently at risk. However, if you are just using these apps to send payments to your family or friends you are not going to indulge in a scam.

Why do people prefer Venmo over Cash App?

Venmo does not have any kind of charges to send and receive funds in your bank account. Similarly, it does not charge fees for sending payments through prepaid or debit cards linked with a bank account. That is one of the main reasons people prefer Venmo over the Cash app.

Is Venmo cheaper than Cash App?

Cash app and Venmo both have the same fee structure. Both of these platforms will not charge any fees except if you are using a credit card. But they will charge a meager amount of fees for an instant bank transfer. They will not charge standard transfer fees and it may take about one to 3 days of time.

What are the disadvantages of the Cash App?

Although the Cash app does not have a fee for standard payment transfers. But in the case of a credit card, it charges 3% of the fee to send payment. 

Conclusion – Cash app vs Venmo

If you want to know which one is better Cash App vs Venmo? Then here we have a complete in-depth comparison of their offerings and payment services. Hope it will make it easy for you to choose one of them.

Demon Jansen

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