In this fast-moving, technology-driven globe, customers desire every aspect of online shopping to be fast and comfortable. That’s why eCommerce retailers need to provide excellent payment choices on their online stores. There are multiple digital payment services available today, all of which make payments easy for both retailers and consumers. These contain Alipay, PayPal, Google Pay, Apple Pay, and Venmo.
Suppose that a consumer has taken some time to view all the products on your official website and then cannot finish the checkout procedure. You can virtually sense the frustration of not being able to pay for those items and then leaving and moving to your site without purchasing anything. For most regions, debit or credit card payments are good for online stores. But occasionally, these don’t function properly – for any reason at all. That’s where digital services like Paypal and Venmo can be helpful. These digital wallets make online payments simpler, timely, and practically infallible.
From an eCommerce outlook, it is a good business practice to offer a variety of payment choices. By offering more options, you have more chances to reach a wider customer base.
PayPal was one of the first digital payments companies was founded in 1998. It began as a manner for individuals to send money through email or pay for buys on eBay. Nowadays, PayPal links merchants and consumers in 200 plus countries with approx. 392 million customer and merchant accounts.
PayPal is a publicly-traded corporation (NASDAQ: PYPL) that possesses several other brands in the online shopping and payments space, consist Venmo, Xoom, Honey, and Zettle. This digital payment information is available on mobile and online —it has a mobile app for Android and iOS, which permits you to send money to friends and family, make payments, request money, etc.
It Is Best For – Compared to PayPal, Venmo has identical traits to transferring money and making online purchases available to friends and family, though it offers a more strong payment solution for small businesses. If you require accepting payments from consumers individually or online, PayPal may be a better option than Venmo.
Venmo is owned by PayPal and is the stake of PayPal’s bigger brand’s family. This portable payment app authorizes you to transfer and receive money fast. The company explains its service as assembling money sending “secure, easy and social.” Additionally, you can utilize Venmo to shop online or in-person through the mobile app. Venmo has approx. 65 million users.
It Is Best For – Venmo is created to be a social, consumer-friendly app. If you require paying a companion for the last night bill of the restaurant, or if you require separating the rent payment with your roommate, a quick, no-fee way to make these transactions through Venmo. Some small businesses also utilize Venmo to accept payments.
How Do PayPal and Venmo Work?
PayPal and Venmo procedure payment utilizing either the current balance in each account or withdraw funds from linked bank accounts or credit cards. Both the services can be acquired online and via a mobile app. PayPal allows users to send or summon payments over the web, while Venmo only shows this process through its mobile app.
Who Should Use PayPal or Venmo?
PayPal is perfect for online merchants who like to give their customers additional payment options. It provides both buyer protection and fraud to assure businesses that they are safe.
Venmo is the more comfortable of the two to send money between two individuals. However, as it does not have the best consumer safety, just like PayPal, it may not be a good choice for sending money to individuals the customer doesn’t know about it.
How are PayPal and Venmo Equivalent?
This discussion can be deceptive because the two portals are – at least on the exterior and very equivalent. At their essence, both provide users with the ability to complete payments or cash transfers digitally. Here are some similarities between PayPal and Venmo:
- Both the app can be linked to your current bank accounts.
- Both are digital wallets used for online payments.
- You can send money to your relatives or friends with both apps.
- You can make free accounts on both apps.
- Both the apps can be utilized by iOS and Android users.
What Are The Main Difference Between Paypal And Venmo?
While the primary function of both apps is similar, there are some essential distinctions as well. These will support you choose which service is more suitable for your business:
Both the companies have robust security attributes, consist:
- Fraud monitoring
- Dealer and consumer protections
- Data encryption
Despite these safety protections, users should always be on the lookout for fraud. Some Venmo users received a scams text message regarding a forthcoming charge with pedagogy on how to cancel it, which requested the user to affirm personal information. PayPal users have accepted identical phishing texts message and emails from fraudsters.
Both firm’s present business and seller accounts to users, but PayPal is more widely acknowledged than Venmo. PayPal is accepted in over 200 nations worldwide, whereas Venmo is only accepted in U.S. transactions. PayPal also allows you to transfer and accept foreign currencies, giving small businesses the opportunity to expand their consumer reach.
Venmo and PayPal have identical attributes, but the companies vary as it arrives at transferring limits. If the number of funds coming out of your account is a major factor, PayPal may be the best option. Venmo has a weekly transaction limit of $299.99 unless you give additional personal information. Verified PayPal account holders have no transaction limit, although a transaction can be limited to $10,000.
PayPal and Venmo are close when it arrives at how long it takes time to send the money. Both guarantee that the money will be available the following day. Both proffer immediate transfer to a suitable bank account or debit card.
Money will show in your account within 30 minutes or less, but you’ll require paying at least a 1% fee for quicker service.
PayPal has more payment options, which consist of credit, debit, and prepaid credit cards. They authorize shoppers to utilize QR Pay at multiple stores, including small businesses and participating retailers. Mastercard is keeping Venmo by expanding to contactless payments wherever it is accepted. You can also utilize a Venmo debit card or view a Venmo QR code at experiencing retailers.
Also, PayPal and Venmo are the same when it arrives at fees. Neither fees charges to accept money from family and friends. ATM withdrawal utilizing your PayPal debit card or Venmo card is approx. $2.50 unless you utilize the free MoneyLink Network cash devices. There are no fees for sending money using your PayPal or Venmo balance or bank transfer.
The major difference lies in your debit or credit card transactions. Venmo debit card transactions are free of cost. Whereas PayPal charges approx. $0.30 per transaction and for debit and credit card transactions is around 2.9%, Venmo takes a flat-rate fee of 3.0% for credit card transactions.
What Are The Benefits of Each System?
Nowadays, we know the differences and similarities between PayPal and Venmo, it’s more comfortable to know the advantages of each app.
- Offers business solutions.
- Simple to use.
- Accessible in more than 200 nations.
- Very fast and security protection.
- All you require is an email address to create a PayPal account.
- Users can easily download this app on both Android and iOS.
- Transactions can be registered for bookkeeping purposes.
- Offers discounts and rebates for dedicated customers.
- Free to create an account.
- Simple to link bank accounts.
- Secure and safe.
- Easy to use.
- You can download it on iPhone as well as Android.
- A fast method to transfer money to family and friends.
- You can follow friends and connections and send messages.
PayPal vs Venmo: Which Is Best?
If you’re looking for an easy service that allows you to transfer and receive cash between friends and family anytime you request a coincidental debit card for buys, you should go with Venmo. It is created as a social or user-friendly money app for transferring funds with individuals you believe.
But if you want more flexibility, in that case, PayPal is the best choice. You will have credentials to debit or credit cards and will be capable of transferring and accepting money from companies and individuals in almost any nation, even if you do not have a confidential relationship with them. Just recognize to inspect individuals thoroughly and move with caution when sending money.
If you’re a daily US citizen looking for a digital wallet, Venmo can serve as a fee-free way to transact money with your friends and family. If you’re a company owner, on the other side, PayPal or Stripe is even the most suitable eCommerce solution in our opinion, which you can learn more about here.