Digital Wallets are the way to go in the world of simple money transfers. PayPal and Venmo are some of the biggest names on the market. Both are widely accepted throughout the world and trustworthy, and many key differences in their ideal use cases.
So, what do you think will win the battle between Venmo vs. PayPal? So, you can’t just judge them on one false payment. It is more complicated than you might think, so read on to learn everything you need to know:
Does PayPal own Venmo?
Let’s just first get this out of the way and address the elephant in the room. Yes, Venmo is owned by PayPal, and it’s been this way since 2013. This just means that all money transfers on both services are handled by PayPal only which is talking about behind the scenes.
Even though they are practically the same thing, there are many differences between Venmo and PayPal when it comes to market, services offered, and customer experience.
Venmo vs. PayPal similarities
If you are considering a choice whether to use Venmo or PayPal, you should be aware of the fact that they are practically the same thing and also perform the same.
Both are capable of digital wallets that can be used to perform actions like transfer funds to other users or shops or banks with little or no fee.
You can also create accounts for free on both the services very easily and can also link them to your account with a minimum of fuss.
They also offer free physical cards, with PayPal offering credit, debit, and prepaid cards and Venmo offering a linked Mastercard debit card.
Venmo vs. PayPal: Differences
While major of transactions is the same no matter which you are using Venmo or PayPal but the two services have several key differences, which have listed and explained below:
Target Audience:
While PayPal advertises itself as the comprehensive solution to money transfers for both businesses and individuals. At the same time, Venmo has a much more targeted niche. It also has a strong aspect, and it has a true purpose of transferring funds between trusted individuals and friends or split cab rides or food bills and small payments like that.
Fraud Protection:
Venmo doesn’t offer any kind of buyer or seller protection. While on the other hand, PayPal offers robust buyer Protections and some seller protection, thus making it a better choice for online purchases and protection from strangers.
Can you transfer money between Venmo and PayPal?
This is also the question a lot of people are asking although Venmo and PayPal are part of the same larger company, there is currently no way to transfer money between Venmo and PayPal directly. Both the platforms work separately and are kept separate from one another.
That said, you can still use them differently by just simply transferring the funds from Venmo to your bank account and then from your bank account to PayPal. There might be certain situations where a fee might be involved, but generally, it doesn’t charge you a fee.
Overview: Which is right for you?
So, in the competition between Venmo and PayPal, which one is right for you? Well, it will depend on you for which task you want them. If you live in the US and just make to make small and simple money transfers to friends to eliminate carrying cash around everywhere, Venmo is an excellent option. For other users like retailers, online shoppers, PayPal is the way to go with an advanced buyer and seller protection.
This was a quick overview of which is best for you.
Read Official Blog Post – PayPal vs. Venmo: Key Differences, Pros, and Cons
