In the United States, the terms “PayPal me” and “Venmo me” are practically interchangeable. That’s because the two digital payment gateways control the vast majority of the digital wallet market. While choosing between the two market leaders is difficult, there are always aspects that make one more suited than the other, depending on the consumers’ needs.
The kind of transactions and the needs of the customers typically determine the outcome of the Venmo vs PayPal debate. Our age is spoiled with choice; there is no end to the range of possibilities available in nearly any service or product. And this empowers customers to make the best decision possible, one in which they do not have to sacrifice on what they want.
There are numerous aspects that influence a consumer’s decision when choosing a digital wallet. The primary ones are ease of payment flow, product pricing and fees, security and fraud policies, transaction limits, easy checkout, supported business models, and customer service, to name a few.
Venmo is owned by PayPal, which is a bit of trivia!
If you’re seeking a Venmo vs PayPal fight, you should first understand that Venmo is a PayPal-owned digital wallet service. Venmo was bought by America’s largest payment processor in 2013. Braintree bought the company for $26.2 million the first time around. Later, PayPal paid $800 million for Braintree, which includes Venmo.
This suggests that PayPal Inc. handles all cash transactions on the two platforms in the background. PayPal’s total payment volume in the first quarter of 2021 was $285 billion. Venmo has a market capitalization of $51 billion. Despite the fact that the two wallets are branches of the same tree, there are nevertheless distinctions that consumers encounter when using them. As a result, we’ve compiled a list of factors to differentiate between the two:
Choose for yourself- Venmo vs PayPal.
1. Overseas Transactions
Venmo’s digital transaction platform is only available in the United States and is limited to that country. The platform can only be linked to bank accounts in the United States. There are no international or out-of-country transactions available. PayPal, on the other hand, can be used for foreign or overseas settlements in over 200 countries and 25 currencies.
2. Determine their target market.
Venmo is thought to be popular among certain communities and individuals. Sole settlements are more feasible than those involving larger items or businesses. For a nominal fee, it can be used by friends, relatives, and acquaintances.
PayPal, on the other hand, is a strategic platform meant to operate and start money transfers for both consumers and corporations.
In level of protection, both platforms have made every effort to guarantee that the transaction process is as secure as possible. Both Venmo vs PayPal require security checks using SSL technology and one-time passwords (OTP). PayPal, on the other hand, does not require you to register before making a digital transaction, whereas Venmo does.
4. Transfer limitation
The transaction limit is another significant distinction between PayPal and Venmo. Venmo is a good option if you need to make a digital transaction for less than $5,000. It does not, however, accept transactions in excess of $5,000. PayPal, on the other hand, enables single $10,000 payments per day with a total cap of $60,000 per day.
Venmo is a smartphone app, so if you’re seeking to make transactions on your desktop or laptop, you’ll want to check into other options. PayPal is another option. PayPal’s services are available on Android, iOS, and desktop computers. Furthermore, PayPal is more widely used due to the fact that money may be simply sent via its QR code.
Venmo VS PayPal- which is better?
Venmo and PayPal, as we’ve seen, provide some of the same services, but each has its unique set of perks. Your choice will be based on the precise service you require as well as your own preferences.
PayPal is the greatest option if you’re running a business and need to take payments online. However, if you want to divide a bill with pals while also being able to send and receive messages and engage socially, this is the app for you.
Venmo is only available in the United States, so if you’re paying someone in another country, you won’t be able to use it. You can make an overseas PayPal payment, but it’s worth looking into other options to ensure you receive the best bargain possible.
Using an international payments professional may lead to better exchange rate and lower overall expenses for your cross-border transfer.
PayPal is a popular global payment service for online shopping and sending money to friends, family, and business contacts all around the world. Venmo is a PayPal subsidiary that allows users in the United States to send personal payments and make purchases from authorized merchants.
Venmo vs PayPal feud should end as it depends on the person’s purpose of transaction. While the services provided by PayPal and Venmo are similar, they are separate, each having their own set of advantages and disadvantages.