PayPal was founded in 1998, making it one of the most popular apps that made online transactions of finances quick and easy. PayPal has come to be known as the veteran in the line of making e-commerce legitimate. Whereas Venmo came into existence during 2009, it is a newer app and has gained popularity among millennials. Often a question arises, does PayPal own Venmo? Yes, Braintree bought Venmo in 2012, and later PayPal acquired Braintree in 2013. The apps are convenient to receive, debit, or transfer money among individuals. They differ in certain features and usage.
- What is Venmo? It is a money-app supported on platforms like iOS, Android, or web.
- How does Venmo work? Through Venmo, a person can transfer or receive money among peers. Venmo has the sole purpose of being a peer-to-peer money app. In Venmo, you can automatically find people (family and friends) with Venmo accounts by connecting your Facebook account or contacts list. Anyone can make a transaction by sending it on the app or by scanning a QR code. Its interface is similar to a social media feed where anyone can post the purchases they made while others have an option to 'like' it.
- Is Venmo free? There is no cost to create an account. The app is free-of-cost. Transactions made from Venmo balance, bank account, or debit card is free to use. However, payments made by credit card charges a fee of 3%. Venmo also offers a linked Mastercard debit card resulting in increasing the purchasing power of the user.
PayPal vs Venmo- Difference:
PayPal has grown into a trust-worthy name for apps enabling the online transaction. Platforms that support PayPal are iOS, Android, Web, which also offers physical payment methods. Venmo is owned by PayPal Company which means they provide similar payment methods and services. But there are certain features which make one better than the other in various cases. The difference between Venmo and PayPal are as followed-
- PayPal has made itself global, where its usage spreads across 200 countries, in 25+ currencies. It has grown into a digital currency (seemingly soon to replace physical wallet in the advancing digital era). Venmo is confined only to the United States.
- Both PayPal and Venmo native apps are attached to the user's bank accounts of a user, payment made from a savings account are free. Is Venmo free? If someone uses the credit mode of payment then Venmo's fee is 3% and while that of PayPal is 2.9%+ $0.30.
- Venmo is usually used to give or receive money to and from trusted peers. Transactions made here are informal (splitting bills, sharing cab fare, so on). Venmo has a lesser transfer limit than that of PayPal (i.e., $4,999.99). Whereas PayPal is the payment method in small businesses, individuals, and employees, it is an instrument in e-commerce. With regards to its usage, the transfer limit is $10,000.
- When it comes to Venmo versus PayPal security, PayPal is mostly used by merchants as it facilitates many additional features for sellers resulting in a more convenient platform for e-commerce and businesses. Few such features include international payment, prepaid cards, higher transfer limits, POS options, PayPal Business loans, and fraud protection. The bank information is encrypted, purchaser protection and seller protection is available. Whereas, Venmo doesn't offer much protection as transactions are made only among people who know and trust each other.
- Can users send money from PayPal to Venmo? No, a user can credit money from an account and then transfer it to another through native apps.
Venmo or PayPal? We know that Venmo is owned by PayPal, so neither of them is better than the other in-service quality. After comparing the features, the fees charged, the ease-to-use, it turns out in Venmo versus PayPal. PayPal is better for official dealings and businesses. Venmo is an informal mode of transactions among peers.