Finding the best cash app is essential to move your money as quickly as you need. The most popular options for this are Zelle and Venmo, two platforms widely used by most.
Although they have the same purpose, they are not the same. However, it isn’t easy to determine which one is better than the two.
Differences between Zelle and Venmo!
Both platforms share the same concept; they allow you to send and receive money quickly and electronically. It is necessary to know how each one works to understand it better:
Zelle’s main features
It is advisable to have Zelle especially when you and your friends, family, and acquaintances with whom you exchange money use the same platform. Money transfers with Zelle are automatic and free.
With Zelle, the transfers are not deposited into a holding account; instead, the funds are withdrawn and deposited directly into your or the recipient’s bank account. Almost all banks work with Zelle (like Chime), but you should evaluate the list of non-participating banks to avoid inconveniences.
The transaction limit for accounts with banks that do not participate in Zelle is $500; it is not possible to withdraw cash through an ATM. For added security, the platform has authentication and fraud monitoring.
Venmo’s main features
Its operation is more like that of a digital wallet; if you use PayPal, you will understand it instantly because they work similarly. You can store your money on the platform and move it between other accounts.
You must be aware of your transactions because some have additional fees. Furthermore, you can only make transactions in the US, standard transfers are free, but instant transfers charge 1.5%.
The sending limit for non-verified users is $299.99; for person-to-person, you can send up to $4,999.99. In addition, you can withdraw cash for free at any of the ATMs in the MoneyPass network.
Security and speed of Zelle vs. Venmo
The security features of both apps are very similar; with both options, all procedures are fully secured. The Zelle team monitors and authenticates transactions to ensure that information is fully protected.
Venmo monitors all transactions for fraud and uses data encryption to protect your data. Both parties are fully secure, but Venmo has better encryption capabilities.
Regarding the speed of transactions, both are peer-to-peer applications. However, Zelle is the fastest, and it is also free. When you transfer money with Zelle, the process is done almost immediately, but in Venmo, if you want it to be free, you will have to wait from one to three days to complete the transaction.
Are the benefits of Zelle and Venmo similar?
Each has excellent benefits, although some are more striking than others. Zelle may stand out between the two, but this depends entirely on each person’s needs.
Advantages of Zelle
- No transaction fees
- Transfers are fast; almost always, the recipient will have the money available in a few minutes
- It is available in over 1000 banks and credit unions in the United States
- You can earn interest on the money in your checking or savings account that is linked to Zelle
Advantages of Venmo
- You will be free of monthly and annual fees
- You can get a Venmo-branded credit or debit card
- The application is available to make online or in-store purchases
- You can carry a cash balance in your Venmo account
- Its social networking features are very interesting to users
How do Zelle and Venmo work?
When you sign up for Zelle, you only require a US email or phone number to send money from the app to your friends or family. You only need to add the email address and the amount to transfer.
Venmo, on the other hand, is not the same. However, you can purchase credit or debit cards from the brand, shop in stores, or directly deposit a paycheck into your Venmo account.