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Cash App vs Venmo – Financial Service Comparison

This Cash App vs Venmo comparison looks at how these two applications compare and contrast. 

April 21, 2022 at 10:13 am in Financial

Cash App vs Venmo: both are P2P companies dealing with money transfers but operating primarily as mobile applications. Notably, both companies came into existence around the same time, with Venmo hitting the market in 2009 and Cash App in 2013.

While there is a 4-year difference between the two companies, they are both worthy competitors, as they both strive to deliver the most effective way of cash transfer and management. 

Cash App vs Venmo – Introduction

The two money companies have similar features with a few differences depending on their niches. For example, Venmo is a domestic cashless money manager, while Cash App is operational in two countries. This Cash App vs Venmo comparison looks at how these two applications compare and contrast. 

About Cash App

Cash App is one of the best P2P programs that allow users to transfer and receive money. Cash App presents itself as a payment platform application and a company-owned financial platform. By logging into a Cash App account, users can easily send and receive money at affordable rates. However, this application offers several additional services. 

cash app

For instance, Cash App allows users to receive their paycheck and tax refunds using direct deposit. On the other hand, users can also buy and invest in Bitcoin for as little as $1. The maximum amount that users can send and receive funds is up to $1000. To have an increased spending limit, a user must confirm his/her identity by providing the name, date of birth, and the last digits of his/her security number. 

About Venmo

Venmo is also an application that allows users to send and receive money. However, Venmo users can only perform these transactions if both parties have the application installed. Venmo works as a friend-to-friend application that greatly serves those connected by the application. It allows users to split bills at restaurants, share costs in purchases made jointly, and many more. Just like the Cash App, this application also allows users to purchase cryptocurrency. 

Cash App vs. Venmo – Features

Looking at the features possessed by these two applications, there are some significant differences. These features are about the transfer of payments and purchases.  

Exchange Rates

Comparing Cash App vs Venmo, Cash App has a variety of exchange rates that its users can utilize. Cash App is now available in the UK, accommodating users who may wish to connect financially and who would wish to transfer money over. The application automatically converts USD to GBP according to a mid-market exchange rate that exists at the time of the exchange. 

Venmo, on the other hand, is only available in the US, and its users can only send and receive money in USD. There are, therefore, no exchange rates applicable in Venmo. However, this is not much of an inconvenience since this platform was developed to be used in the US. 

Locations

Cash App also wins the location battle between Cash App vs. Venmo. Venmo is a domestic P2P digital wallet only operational in the US. Therefore, users do not have an opportunity to send money to other countries, as they also do not have any other conversion rate. On the other hand, Cash App allows users to transfer funds from the US to the UK and gives them a chance to convert their funds from USD to GBP and vice versa. 

Transfer Speed

Let’s discuss now Cash App vs Venmo transfer speed. Cash App allows instant money transfer among those who share the same application, and the same goes for Venmo users. Venmo users will have to wait 1-3 days to have the payment reflected in their bank accounts when it comes to bank transfers. Cash App is no different regarding the number of days it takes for the money to reflect in the bank account. However, Cash App allows its users to experience instant transfer by charging them a fee of 1.5% on the amount under a transaction. 

Payment Options

Venmo wins in transfer options in the Cash App vs Venmo battle. Venmo payment options include standards bank transfer whereby users can deposit money to an eligible bank account between 1-3 business days. There is also the instant transfer option, where they can deposit money to a bank account within 30 minutes at a fee of 1.5%. 

Finally, there is a direct deposit feature where users eligible for this service deposit their paychecks electronically to a Venmo account. Cash App only has standard deposits and instant deposits options.

Ease of Use, Accessibility, and Security

The Venmo application has more accessible and user-friendly navigation, as it is easy to search and find fellow Venmo users through contact synchronizing. On the other hand, Cash App has a very simple and straightforward display that works well for peer-to-peer transactions.

On the aspect of security, Cash App is not insured by the FDIC, which limits its bank transfers. Cash App has also employed the state of the art encryption services, 2-factor authentication, and fraud detection technology, making it very safe. Venmo also has its own advanced encryption security and the 2-Factor authentication needed to protect financial information. 

Cash App vs Venmo – Fees

Regarding the comparison between Cash App vs Venmo, users making transfers using credit cards incur a fee of 3% on both applications. Venmo charges sellers a fee of 1.9% when their users receive funds on their Venmo business account. Cash App has no charges embedded on their withdrawals from their balance, which takes about three business days for the balance to reflect on the user’s account. 

However, those who wish to make instant, faster transfers will be charged 1.5% for this accelerated service. This means that emergency withdrawals are possible and effective. As of August 2021, a 1.5% fee was charged to Venmo users who transfer funds from their Venmo accounts to their debit/credit cards or bank accounts. Venmo users incur a further 1% flat fee on payments above $0.25. 

Finally, there are no charges pinned on transfers funded by Venmo balance and those done by bank transfers, prepaid cards, and debit cards. In addition, when users make merchant purchases, they do not incur any fees on all forms of purchases, even when a credit card is in use.

Cash App vs Venmo – Limits, Transfer Speed, Payment Method

Cash App allows instant money transfer among those who share the same application. This is the same for Venmo users. Regarding bank transfers, Venmo users will have to wait 1-3 days to have the payment reflected in their bank accounts. 

Cash App is no different regarding the number of days it takes for the money to reflect in the bank account. However, Cash App allows users to experience instant transfer by charging a fee of 1.5% on the transferred amount.

Related articles: How to Transfer Money from PayPal to Cash App | Credit Associates Reviews

Conclusion

It is clear that both companies are worthy competitors, and they do allow their users to send, receive, and pay money conveniently. However, if you are looking to transfer money both in the US and in the UK, Venmo has limited operations in the US, making it favorable to US dwellers only. On the other hand, Cash App is a more flexible and efficient application. 

Notice: The information in this article and the links provided are for general information purposes only and should not constitute any financial or investment advice. We advise you to do your own research or consult a professional before making financial decisions. Please acknowledge that we are not responsible for any loss caused by any information present on this website.
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