PayPal and Venmo are big digital wallet payment system. Venmo is one of the newest digital wallets that has grown popular. PayPal, on the other hand, is a famous and strong payment system, trusted. This is what brings about the competition PayPal vs Venmo. Over the years, PayPal has been used as a payment method for eBay. I believe we have heard a lot about these two giant systems. In this article, we will be seeing the differences between the two. This will enable you to make the right choice of which payment system is actually good for you.
How Does Venmo Work – PayPal vs Venmo
As said earlier, Venmo is a digital wallet for payment. Venmo is partly a digital wallet and a social media feed. This app always asks users for comments on each transaction. These customers’ comments are posted as a newsfeed- style for people to browse. Other individuals use these comments box to post stories and jokes. Users can control which transaction if there is any visible by using the privacy settings.
Venmo is designed to emulate cash payments. Transfers on Venmo account are done immediately and cannot be reversed. Paying the wrong person, therefore, means that you have to plead with a nice gesture for the return of your money. The company sometimes intercede but mostly the recipient must consent to refund the money.
The platform is designed majorly for friends and family. It handles interpersonal private transaction that takes place on PayPal among a network of friends. The Venmo website has it clearly stated that Venmo service is designed for payments between friends and people who trust each other. Also, Venmo is good on their services, it replaces cash when your friends owe you. Venmo is free to use. With Venmo, your credit card payments are reduced to a 3% transaction fee that the card institution charges. Transfer from a user’s balance on the debit card payments does not attract any cost.
How Does PayPal Work
PayPal is a well known and used digital wallet. PayPal was established in 1998, they went public in 2002. However, both PayPal and Venmo apps are fondly used to make fund transfer and to easily make a transfer of fund securely between bank accounts. PayPal, on the other hand, has diversified into rendering other financial services and is just like a bank and this has made it more than a payment app.
Additionally, PayPal does not only render payment services but also finance big purchases, extend lines of credit, and provide customers with debit MasterCard. This debit card is used to make purchases at a small store or to withdraw cash. PayPal cards are widely accepted in stores all over the world for payments of goods and services. Some even accept contactless PayPal payments.
PayPal charges 2.9% + 0.30 for payments from debit and credit cards but offers free transfers from PayPal balances while Venmo is free. No charges
In conclusion, we have seen each payment system works and charges on each of them. Some will conclude that Venmo is the best based on no free charges and it’s easy to use. While some based on security and payment features, PayPal may be their best. But in all the choice is simply yours to make. That is all for the discussion PayPal vs Venmo.