Nowadays, smartphones are providing the most advanced features to users. Online payments are getting popular with the advancement in smartphones.
Various companies have launched their applications and wallet-based platforms to ease transactions from one person to another.
PayPal and Venmo are two such online payment platforms that are serving or used by millions of people worldwide to ease their transactions and payments.
These platforms are used to electronically send or receive money from one another person.
Key Takeaways
- PayPal is a digital payment platform that allows users to send and receive money, while Venmo is a mobile payment app owned by PayPal.
- PayPal offers a wider range of services, including international transfers and business accounts, while Venmo focuses on peer-to-peer payments and social features.
- PayPal charges fees for some transactions, while Venmo does not charge fees for sending or receiving money.
PayPal vs Venmo
The difference between PayPal and Venmo is that Paypal is an online payment platform that is widely used to send and receive money by using the internet. It is a convenient platform for transferring money to known ones, online shops, etc. On the contrary, Venmo is a mobile application that was launched by considering the convenience of customers who purchase with authorized merchants or sellers.
Paypal is an online payment platform established in the year 1998. This platform is used to transfer money even abroad to your close ones or merchants.
Any individual can transfer or send money by using your email address which is consequently linked to your personal Paypal account.
Venmo is also an online payment application that you can use to send or receive money. The amount is directly sanctioned to the bank account linked to the Venmo application.
The money is transferred on business days and reviewed as well, which also results in delays. This effective application is used in the United States only.
Comparison Table
| Parameters of Comparison | Paypal | Venmo |
|---|---|---|
| Availability | It is available worldwide. Nearly 200 countries are covered. | It is available in U.S. only. |
| Payment Method | Credit, Debit card, bank transfer, and PayPal funds | Credit, Debit card, bank transfer, and Venmo funds |
| Security | Data Encryption | Data Encryption |
| Withdrawal Timeframe | 3-5 business days | 1-3 business days |
| Best For | Paypal is majorly suitable and best for merchants or businesses | Venmo is best for everyday users or P2P |
What is PayPal?
PayPal is one of the popular online platforms which is launched in the year 1998 and specifically focuses on online commerce.
This platform allows users to easily make payments by using online mode and its application. Any individual can use this platform by linking their bank account with PayPal.
It is majorly used by various online merchants and e-commerce platforms.
PayPal has a one-touch feature that enables users to shop from merchants conveniently in just a few clicks.
The payment or transfer methods of this platform include credit, debit card, bank transfer, and PayPal funds. The one-touch feature easily works on both desktop and mobile.
Users can use this platform to deposit checks into their accounts.
What is Venmo?
Venmo is an online payment platform available in the United States only, and it was launched to send or transfer money to other Venmo users more conveniently.
The users can deposit a check in their linked Venmo account by simply taking a picture from the Venmo application.
Venmo is a merchant and e-commerce-friendly application that is specifically designed for transferring money fast.
No fee is charged for the debit card purchase and offered to the users to easily make payments by scanning the QR code. Users can make the payment by using its application.
Main Differences Between PayPal and Venmo
- PayPal and Venmo are online payment platforms that are effectively used for receiving or sending money or making transactions. Both of these platforms are used effectively for making payments to merchants, e-commerce, and personal use as well. However, the reach and availability of these applications create a major difference. PayPal is an available worldwide platform that is used by millions of people in nearly 200 countries. On the contrary, Venmo is available in the United States only.
- PayPal and Venmo are free-to-use platforms that anyone can use by simply registering themselves and linking their bank account. The card or the transaction fees of these platforms varies from one another. Payment or the transfer method of PayPal includes credit, debit card, bank transfer, and PayPal funds. On the other side, the transfer method of Venmo is also similar to that of PayPal. The only difference is Venmo Funds.
- PayPal and Venmo have data encryption security to enhance the reliability of the users. These online payment platforms have apps for better convenience services and data security for the users.
- The withdrawal frame somehow affects the financial activity of the users. Various platforms are available in the market with different withdrawal frames. In the case of PayPal, the withdrawal frame is comprised of 3-5 business days. While in Venmo, this withdrawal frame consists of 1-3 business days.
- PayPal and Venmo are quite famous platforms that are commonly used for transferring money to merchants or for personal use. With variations in transfer limits, these platforms are launched for different purposes. PayPal is majorly used for businesses or merchants. On the contrary, Venmo is majorly used for personal or everyday use.
- https://ojs.aaai.org/index.php/ICWSM/article/view/14873
- https://digitalcommons.lmu.edu/cgi/viewcontent.cgi?filename=0&article=1253&context=honors-research-and-exhibition&type=additional
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Piyush Yadav