Cash App vs Venmo: Which Is Better?

Who doesn’t know about Cash App or Venmo, especially among young adults in the United States? Not many, I guess. They are very popular mobile payment applications used for making transactions online. 

The way people handle their finances is changing courtesy of the digital payments industry. Most digital payment apps are free to download and use, enabling you to split bills with friends or make in-store purchases without any additional charges.

Popular mobile payment apps like Cash App and Venmo allow you to send and receive money quickly and safely. Both function as peer-to-peer (P2P) payment platforms that allow users to link their bank accounts or debit cards.

So which is the better option of the two? That is what this article aims to answer by pitting these two giants against each other to see who takes the crown. Without further ado let’s start the Cash App vs Venmo match.

What Is Cash App?

Cash App is a mobile payment service that allows you to send and receive money quickly and easily. Founded in 2013 by Square, Inc., Cash App has become increasingly popular over the years. You can use it to pay for things like meals, shopping, or even to split bills with friends. 

It’s simple and easy to use, making it a popular choice for many people. You can link your bank account or debit card to your Cash App to easily transfer money. Additionally, Cash App offers a Cash Card, which is like a debit card that you can use to make purchases or withdraw cash from ATMs. 

What Is Venmo?

Venmo is a mobile payment service that makes it easy to send and receive money between friends and family. It was founded in 2009 and is popular for its ease of use and social features. It is widely used for splitting bills, paying rent, or just sending money to friends. 

With Venmo’s social feed, you can see what your friends are paying each other for. Additionally, you can link your bank account or debit card to Venmo to easily transfer money. Venmo also offers a Venmo Debit Card, allowing you to use your Venmo balance for purchases online and in stores.

Cash App vs Venmo: Comparison of Features

To know which is better for you between Cash App and Venmo, let’s compare them across various factors. The factors that we’ll be considering are security, transaction fees, user interface and experience, transaction speed and limits, and business accounts. 

By evaluating their features, it will be easier to determine the better fit for your needs between the two. 

Security 

Both apps utilize advanced security features like multi-level encryption, two-factor authentication, security locks, and anti-fraud technologies to protect users’ personal information and funds. 

Additionally, Cash app offers an extra layer of security by allowing users to set a PIN or fingerprint identification for app access.

Transaction Fees

Cash App charges a 0.5% to 1.75% fee ($0.25 minimum fee) for instant transfers, a 3% fee for money transfers using a credit card, and a $2 fee for ATM transactions. For business accounts, Cash App charges a 2.5% fee per transaction and a 2.75% fee for accepting credit card payments.

Venmo charges a 1.75% fee ($0.25 minimum fee and $25 maximum fee) for instant transfers, a 3% fee for sending money using a credit card, and a $2.50 fee for ATM transactions. For business accounts, Venmo charges a 1.9% fee plus $0.10 per transaction.

User Interface & Experience

Both Cash App and Venmo offer interfaces that are easy to use. Venmo takes a more social approach with its news feed format, while Cash App has a simple design focusing more on functionality rather than aesthetics. 

Venmo allows users to choose to make their transactions public or private, while Cash App focuses on simplicity and effectiveness.

Transaction Speed & Limits

Both payment apps provide immediate transfers to users within their network. However, Cash App has a slight edge with its “Instant Deposit” feature, enabling customers to quickly transfer money from their Cash App balance to their bank account for a little charge.

When it comes to spending limits, Venmo has a weekly spending limit of $299.99 until the account is verified, while Cash App has a limit of $250 per week. Once verified, Venmo allows users to send as much as $25,000 per week with a business profile. On the other hand, Cash App requires further identity verification to send or receive over $1,000 per month.

Business Accounts 

Both payment apps provide options for businesses to receive payments from customers. Venmo charges businesses a 1.9% fee plus $0.10 per transaction, while Cash App charges a 2.5% fee for transactions accepted and a 2.75% fee for credit card payments. 

Furthermore, Cash App provides businesses with more advanced tools and features compared to Venmo. This includes real-time sales tracking and the ability to create invoices for clients. Venmo’s business features are more limited and primarily focused on personal use. Also, one should note that business accounts on Venmo are subject to tax reporting.

Frequently Asked Questions About Cash App and Venmo

1. Which is better Cash App or Venmo?

To decide whether Venmo or Cash App is better for you, consider your specific needs. Venmo is more social and user-friendly, while Cash App provides more security features and business tools.

2. How do I send and receive money with Cash App and Venmo?

Sending and receiving money with Cash App or Venmo is simple. Just download the app, set up your account and then you can easily send money to friends or family by entering their username or phone number. On the other hand, if you receive money, you will be alerted.

3. Is Cash App safer than Venmo?

Both of them use advanced security features to protect your information and funds. However, Cash App offers additional security options, such as setting a PIN or fingerprint identification for app access.

4. Can I use Cash App and Venmo without linking a bank account?

You can use Cash App and Venmo without linking your bank account only if you link your debit card. You need to link either a bank account or a debit card to be able to transfer money to and from the app.  

5. Can I add a gift card to Cash App or Venmo?

No, you can’t link retail branded gift cards to Cash App or Venmo. However, you can add payment network gift cards like Visa, Vanilla, and Mastercard gift cards to Venmo. 

Conclusion 

On a final note, the better option for you between Cash App and Venmo depends on your specific needs and preferences.

If you prioritize security and business features, Cash App might be the better choice for you. On the other hand, if you prefer a more social and user-friendly experience, Venmo could be the better option. 

Ultimately, it’s important to consider your priorities and each app’s features to determine which of them best fits your requirements.