Cash App vs Venmo: Which App is Better?

The digital payments industry is always rife with new ways to manage finances, transfer funds, and carry out transactions. In this environment, the choice of a mobile payment provider is never simple and clear-cut. However, Cash App and Venmo stand out among the rest of the bunch as the most attractive (or at least the most popular) providers on the market.

So, is Venmo or Cash App better? In this article, we will discuss the differences between the two and compare their features, fees, and approach to security. Welcome to the ultimate in-depth review comparing Venmo vs. Cash App.

Cash App vs. Venmo: Features Overview

What’s better: Cash App or Venmo? For starters, Cash App and Venmo are pretty similar, providing a simple, modern, secure, and convenient way to send and receive money digitally. These mobile payment apps have a lot in common—they both offer instant transactions and work on Android, iOS, and as a website application. However, while Cash App is available in both the US and UK, Venmo is only available to US users.

Cash App’s Key Features

Cash App is a P2P application designed for sending, receiving, and transferring of money, as well as for investing funds, which sets this payment service apart from its competitors. The app is well-known as an ecosystem that combines banking and investments.

Cash App also has a unique money-saving feature, which allows users to put funds aside into savings without any fees and round up transactions by putting the change into a savings balance. In addition, Cash App offers a free tax filing service.

The most significant difference between Cash App and Venmo is that Cash App provides advanced opportunities for businesses, allowing them to accept payments, track sales, and issue invoices.

As for the notable shortcomings of this provider, there are transaction limits for new users and the lack of joint accounts.

Venmo’s Key Features

Venmo is a P2P payment app that not only allows you to transfer money and make payments but also stay in touch with your close ones. Venmo’s key selling point is splitting bills with friends and family, and it made the platform extremely popular.

Another distinctive feature of Venmo is its built-in social network that allows users to communicate with friends and read news feeds. This social component also allows users to add stickers to payments for personalization. Furthermore, Venmo users can make their profiles public so they can share their payments and monitor the actions of other users.

When choosing between Cash App or Venmo, note that the latter allows users to issue a credit card as well as a debit one.

Among the main disadvantages of Venmo are the lack of international transactions, limited customer support, and some notable cases of fraud.

Cash App versus Venmo: Fees Overview

By default, both Cash App and Venmo are free—there is no charge for downloading, opening an account, and using these mobile payment apps to transfer funds. However, when it comes to additional services and advanced functions, some extra fees may apply.

Overall, both services offer similar deals — free digital transactions through a linked debit card, bank account, or built-in app balance.

However, there are also certain differences between the two.

We have already published materials about Venmo what is it, how to use it, and how to create a Venmo account in our previous articles.

Cash App Charges

• 0.5% to 1.75% fee ($0.25 minimum) for instant transfers;
• 3% fee for money transfers using a credit card;
• $2.50 fee for ATM transactions;
• 2.75% fee per transaction for business accounts.

Venmo Charges

• 1.75% fee ($0.25 minimum and $25 maximum) for instant transfers;
• 3% fee for sending money using a credit card;
• $2.50 fee for ATM transactions out-of-network and $0 in-network;
• 1.9% fee plus $0.10 per transaction for business accounts.

For more information on how to use Venmo for business transactions visit the linked article.

Cash App vs. Venmo: Security Comparison

If you are confused by the question of can my Venmo be hacked or can my Cash App be hacked, here’s what the platforms have to say in their defense:

• Multi-level encryption;
• Two-factor authentication;
• Security locks;
• Anti-fraud technologies.

Both services have implemented some of the most powerful encryption technologies on the market to protect client data. However, there is one difference that allows Cash App to be one step ahead of its competitors: the app’s users can use biometric (fingerprint) identification in addition to the industry-standard two-factor authentication.

Final Thought

Cash App and Venmo are two payment ecosystems that have completely transformed the way we manage our transactions. While the two have a lot in common, both services have distinct features that make each a better option in some cases.

Once again, which is better: Cash App or Venmo? There is no universal answer; the choice depends on your needs, financial goals, and lifestyle. Cash App will be the better option for users interested in investing and saving, as well as for those who need its tax filing function. Venmo will be suitable for those looking to make their transactions more personal, frequently splitting bills with friends, as well as for those for whom a dedicated credit card is a must-have.

Therefore, what service is better for you depends entirely on your financial habits. If all you need is a free mobile payment app, then either platform will be a great choice. Whatever you choose, both Cash App and Venmo are good enough to be widely adopted, and so will most likely meet your needs, too.