Cash App vs Venmo (2024 Updated) What’s Best for You?

Last Updated on June, 2024

He talked a lot when I asked my friend about popular mobile payment apps like Cash App and Venmo. Finally, one common point about Cash App and Venmo is ‘Peer-to-peer transactions.’

But this alone didn’t convince me to consider them when involving money. So, as usual, I started researching. No one can do detailed research for us like we do for self-satisfaction, right?

However, I learned a lot about these apps at the end of my research.

Continue reading to learn about these apps.

Quick Summary

When deciding between Cash App and Venmo, it’s crucial to consider their unique features and drawbacks. While both apps charge fees for linked credit cards (3% for Cash App and 1.75% for Venmo), the choice ultimately comes down to personal needs and preferences.

Both Cash App and Venmo have similar core functions, allowing for peer-to-peer money transfers, but Cash App offers additional features such as tax filing, investing in stocks, and a physical debit card.

Cash App has a more business-like interface, while Venmo has a social and interactive approach, making it more suitable for personal use with friends and family. Keep reading to determine the best fit for you.

Key Features

  • You can get your paycheck or government benefits directly into your account on both apps. 
  • Cash App helps you file taxes for FREE, which Venmo doesn’t offer. 
  • Venmo and Cash App are free to download and use—there are no fees for signing up or using the basic features.
  • Both let you use a debit card. Venmo accepts credit card payments; Cash App allows you to link a credit card but with a 3% fee. 
  • Both allow instant money transfers between friends or for quick payments.
  • Once you hit ‘Pay,’ you can’t cancel it on either app, so be careful.

Cash App Vs Venmo: Comparison Table

FeatureCash App Venmo
Fees$0 for standard direct deposits and transfers with Cash App account balance or linked bank account
$2 to $2.50 ATM withdrawal fee
2% to 3% for buying bitcoin
0.5% to 1.75% for instant transfers
3% to send money with a credit card
$0 for standard deposits and transfers with Venmo balance or linked bank account
$0 in network ATM withdrawal ($2.50 out of network)
1.5% for instant transfers
1.5% to 2.3% for cryptocurrency transfers ($0.50 if under $25)
Payment methodsCan send money using Cash App account balance, linked bank account, and debit or credit card
Can spend on purchases using the account balance, cash card debit card, mobile wallets (Apple Pay and Google Pay) with a Cash card
Can send money using the balance in Venmo, linked bank account, debit or credit card, and AMEX send account
Can spend on purchases using Venmo balance, Venmo debit card, and Venmo credit card 
Transfer limitsFor unverified accounts: 
Spend up to $250 per 7-day period
Send up to $1000 per 30day period
Receive money up to $1000 per 30day period
For verified account(s):
Transfer limits vary by user
For unverified accounts:
Send up to $299.99 per 7-day period
No receiving limit
For verified accounts:
Can send up to $4,999.99 in P2P payments per 7 day period
Transfer speedFor standard transfers, it takes 1 to 3 business days
Note: Instant direct deposits 1.5% fee
For standard transfers, it takes 1 to 3 business days
Note: Instant deposits 1.5% fee 
Global transfersYes. Global transfers between the US and the UKSadly, no. 
Supported devicesiOS, Android, and BrowseriOS, Android, and Browser
Best forCan easily transfer funds between anyone
Invest in stocks
Filing taxes
Buying Bitcoin
Can easily transfer money between friends and family (domestic transactions)
Can make purchases, including with the Venmo credit card
Buying Bitcoin, Litecoin, Bitcoin Cash, and Ethereum

Cash App Vs Venmo

What is Cash App and How Does it Work?

a screenshot of the cash app website homepage

Cash App is a flexible payment app and financial platform developed by Square, a leading payment processing company. 

Unlike traditional banks, Cash App is not a bank but a vital money transfer service accessible through a mobile device app or online portal.

  • Money Transfer and Basic Functionality:

Cash App offers seamless money transfers at its core, allowing users to send and receive funds effortlessly. Cash App provides a quick and user-friendly platform for these transactions, even if you’re splitting bills with friends, recompensing someone, or making payments.

  • Additional Features:

Beyond its fundamental money transfer functionality, Cash App offers various additional services. Users have the OPTION to invest in stocks directly through the app and engage in Bitcoin trading. This diversification allows Cash App to cater to users with varying financial interests.

  • Cash Card and Connectivity:

GUESS WHAT? Cash App users can use a free Cash Card, a debit card linked to their Cash App balance. This card functions just like a regular Visa credit card and can be used at any merchant that accepts Visa.

Plus, Cash cards can be connected to popular digital wallets like Apple Pay and Google Pay, offering users even more flexibility in their digital transactions.

  • ATM Withdrawals: 

One UNIQUE feature of Cash App is its integration with ATMs. Users with a Cash Card can withdraw from ATMs, providing convenient access to their funds in physical locations.

In short, Cash App combines the simplicity of money transfers with a suite of additional financial tools, making it a flexible and comprehensive platform for users looking to manage their finances skillfully. 

What is Venmo and How Does it Work?

a screenshot of the venmo website homepage

PayPal owns Venmo, which has become a preferred platform for many users seeking easy and convenient ways to manage their finances. I’ll tell you how it works; keep reading.

  • Core Functionality: 

Venmo allows users to seamlessly send and receive money digitally. This feature is widely used for various purposes, from paying bills to sending rent money to roommates.

Understood? Users can purchase at eligible stores directly through the Venmo app, adding to the platform’s versatility for everyday transactions.Venmo also supports the buying and selling of specific cryptocurrencies, expanding its range of financial services.

  • Payment Cards:

Venmo offers a debit card issued by Mastercard, providing users with the convenience of FREE withdrawals at MoneyPass ATMs across the United States. Plus, Venmo provides a credit card issued by Visa, offering cash-back rewards for eligible purchases. Both cards can be managed directly through Venmo.

  • User-Friendly:

Venmo is a centralized hub for users to handle various financial activities, from transferring money to managing debit and credit cards.

In short, Venmo provides a comprehensive solution for people like you. This includes paying bills with friends or making purchases. Venmo’s features and user interface make it a popular choice for a convenient and efficient mobile payment solution.

Interface and Design 

Cash App

a screenshot of the cashapp interface in a laptop device

Cash App has an easy and clean interface. When you open the app, you see a SIMPLE homepage with your balance prominently displayed. The primary tabs at the bottom allow you to navigate between the home screen, request, and send money. It’s easy to find your transactions and manage your account settings.

Cash App also has a UNIQUE feature called the ‘Cash Card,’ a physical debit card linked to your account that permits you to spend your balance like a regular bank card.

Venmo

Venmo, on the other hand, has a more social and playful interface. The app opens to a feed where you can see your friends’ transactions and add comments or emojis.

a screenshot of the venmo interface in a laptop device

The home screen displays a split between your balance and recent transactions. Sending money is easy, and you can include notes or emojis to describe the purpose of payment. Venmo’s interface is designed to feel like a social network for payments, adding a fun and interactive element to the experience.

In short, Cash App has an easy and business-like interface, while Venmo has a more social and interactive approach, resembling a social media feed for financial transactions.

Ease of Use

Cash App is excellent for you if you want things to be simple and easy. Because it’s SUPER EASY to use. But if you want a more social experience and the ability to do transactions globally, Venmo is also a better option.

Cash App has good services for businesses, so if you own one, it could be more suitable. Are you clear now?

User Identification

Venmo uses a customized username to help friends and contacts identify you when sending or requesting money. You can personalize this username. 

Cash App, however, uses a $Cashtag as your UNIQUE IDENTIFIER, starting with ‘$.’ In addition, Cash App offers more search options, allowing you to find individuals or businesses within the app using names, phone numbers, or email addresses.

Fees and Charges

Venmo and Cash App offer free transactions when you send money from a linked account or use your balance. However, there are distinctions in fees for credit card transactions. 

If you use a linked credit card on Venmo, they charge a 3% fee (but no monthly fees). On the other hand, Cash App also charges a 3% fee for credit card transactions and a 2.75% fee when receiving credit card payment(s) as a business.

Regarding instant transfers, Venmo charges a fee of 1.75%, with a minimum fee of $0.25 and a maximum fee of $25. In comparison, Cash App charges between 0.5% and 1.75% with a minimum fee of $0.25.

Requesting and Receiving Money

If you want to ask someone to give you more money using the Cash App, enter the amount you need and click ‘Request’ in the app.

You can make the request using the person’s name, $Cashtag, phone number, or email, and you can also add a note if you want. When someone sends you money, you can see it in the app’s activity feed.

The amount goes into your Cash App balance, and you can use it in the app, spend it, or transfer money to your linked bank account. On Venmo, asking for money is done on the same screen where you send payments. Type in the person’s name, enter the amount, add a note, and tap ‘Request.’

The money you receive goes into your Venmo account balance. You can keep it in Venmo or transfer it to your linked bank account.

Customer Service

Cash App may be the superior option if you appreciate excellent customer service. Cash App offers a comprehensive support system, allowing you to reach out via phone, directly through the app, or email.

On the other hand, Venmo, while having customer service, often receives criticism for its slow response times and limited assistance options. When issues arise, getting quick and helpful customer service is crucial.

Sending and Spending Money

Cash App

a person using cash app for money transfer inside US
  • You can send money (digital payments) to people and businesses without fees using your Cash App balance, linked bank account, or debit card.
  • If you use a linked credit card, there’s a 3% fee for each transaction.
  • You can accept Payments through a Cash App, which is usually quick, within 1 to 3 business days, and if there’s a pending payment, you need to finish the transaction to ensure security and verify the legitimacy of the payment.

Venmo

  • You can also send money to individuals, groups, and even some businesses without fees using a linked bank account, debit card, or Venmo account balance. 
  • If your Venmo balance isn’t enough, the transaction will be covered by your linked bank account or debit card.
  • Payments to individuals happen instantly most of the time.
  • If you use a linked credit card, there’s a 3% fee for each transaction (same as Cash App). 
a screenshot of the steps how venmo works

In short, Cash App and Venmo let you send money for free using specific methods, but there’s a 3% fee when using a linked credit card. Both payment apps are generally quick, with slight differences in handling pending transactions.

Business Accounts

Remember! Cash App charges businesses 2.5% for transactions and 2.75% for credit card payment(s), while Venmo charges 1.9% plus $0.10 per transaction. (Learn about CashApp for business vs personal account.)

a screenshot of setting up a cashapp business account

Venmo business accounts involve tax reporting, but Cash App doesn’t mention tax implications on their website.

Also, Cash App provides more advanced tools for businesses compared to Venmo. In the Cash App ecosystem, business owners can track sales in real-time and create invoices for clients, making it easier to manage finances.

On the other hand, Venmo’s business features are more basic and primarily designed for personal finance use. Although businesses can receive payments on Venmo, there’s no OPTION for tracking sales or managing inventory.

a screenshot of venmo for business

Transaction Speed and Limits

I hope you already have a basic idea of the transaction speed and limits in the above table. However, I’ll discuss this in detail now.

Money transfer apps like Venmo and Cash App aim for quick transactions, offering near-instant transfers within their network. 

Cash App holds a slight advantage due to its ‘Instant Deposit’ feature, allowing users to move funds from Cash App to their bank account in seconds for a small fee. 

To protect users and prevent fraud, both Venmo and Cash App implement transaction limits, which depend on the level of account verification. 

Unverified Venmo accounts have a $299.99 weekly spending limit, whereas verified accounts have a $4,999,99 weekly limit for person-to-person payments.

Cash App sets a $1000 sending and receiving limit per 30-day period for an unverified account(s). Users can boost these limits by providing additional personal information, such as their full anime and social security number, potentially gaining access to higher sending and receiving limits.

In short, these two apps prioritize SWIFT transactions within their network, and Cash App’s instant deposit feature gives it a slight edge. Transaction limits are in place to prevent fraud, and users can increase these limits by verifying their accounts with additional information. 

Security

Cash App and Venmo take security seriously by using advanced technologies to protect your personal finance information. They encrypt the data you send through their platforms, making it hard for anyone to access or intercept your sensitive info. 

For added security, both apps offer two-factor authentication. This means that besides entering your password, you must also provide a one-time code sent to your registered device before you can access your account.

Now, Cash App goes a step further when it comes to accessing the app itself. It offers two-factor authentication for login and allows you to set a PIN or use your fingerprint for app access.

This extra security feature makes it even more challenging for unauthorized individuals to enter your account.

Alternatives for CashApp and Venmo

Alternatives to Cash App

wise money transfer
revolut money transfer logo
payoneer money transfer logo
WiseRevolutPayoneer
Low-cost international transfersCurrency exchange and cryptocurrency tradingGlobal payment solutions
Multi-currency accountGlobal spending with no hidden feesPrepaid Mastercard for online and in-store purchases
Wise bank card for spending in different currenciesBudgeting and analytics for financial managementMulti-currency support for international transactions
Checkout more of the CashApp alternatives.

Alternatives to Venmo

zelle logo
google pay logo
meta pay logo
Zelle Google PayMeta Pay
Bank integration for direct transactionsFlexible in-store and online payments Cross-app payments with Meta ecosystem
Real-time peer-to-peer paymentsIntegration with Google servicesSecurity measures like PIN protection
Security features for user protectionRewards and loyalty card support Fundraising and donation capabilities 

Pros and Cons

Pros and Cons of Cash App

Pros

Free to download and use
Instant peer to peer transfers for Cash App
Debit cards and direct deposit capabilities
Fee-free tax filing through Cash App taxes 
Ability to invest money in stocks and Bitcoin

Cons

Unable to cancel authorized transactions
Transaction limits for new users
3% fee for sending money using a credit card

Pros and Cons of Venmo

Pros

Free to download and use
Instant P2P transfers for Venmo to Venmo payments 
Use Venmo to pay at authorized merchants 
Debit card and credit card available
Direct deposit is available

Cons

3% fee for sending money with a credit card
Unable to cancel authorized transactions 
No support for international transactions 

Conclusion

Which App is in your mind now? (my choice is Cash App)

If you’re still confused, I’ll help you choose one among these apps. However, it would help ONLY if you honestly answer the following questions. Deal?

  • Do you want investment opportunities and tax filing capabilities? (Yes/No)
  • Do you own a small business and are looking for advanced features? (Yes/No)
  • Do you prefer a social aspect in an app? (Yes/No)

Found your answer? Remember! Both apps have their strengths and weaknesses. So, ALWAYS think and decide.

FAQs

Yes, FDIC insurance is provided by Cash App and Venmo for certain transactions. The amount in your Cash App account balance is covered by FDIC pass-through insurance through partner banks in case of a bank failure. For Venmo, funds added through mobile check or direct deposit are also covered by FDIC insurance.

Cash App and Venmo have strong security features, including advanced encryption, security locks, and fraud protection notifications. These measures protect your money and personal information, providing a secure experience when using the apps.

No, Cash App and Venmo are not necessarily better than PayPal. Each platform has a different purpose and target audience. PayPal is primarily used for business transactions, while Cash App and Venmo are designed for personal use among family and friends.

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Author
Allen Morning
I'm Allen Morning, with a background spanning over 15 years in international finance and education from Harvard and Stanford. I founded Currenciap with a vision to demystify and streamline global financial transactions. My journey in finance has fueled my commitment to creating a platform that is both user-friendly and efficient, making international finance accessible to everyone. You can find more about me here.

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