Cash App vs. Venmo: How They Compare in 2024

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Contributor, Benzinga
March 22, 2024

Cash App and Venmo are both mobile payment apps that enable users to send and receive money easily from various sources. Find out which one is right for you.

In today's world of digital payments, Cash App and Venmo have become popular choices for transferring money quickly and conveniently. But which one is the better option for your needs? While both apps have their own unique features and benefits, understanding the key differences between them can help you make an informed decision on which one to use for your financial transactions.

Read on to learn the pros and cons of each and weigh performance factors to choose what works best for you.

Cash App vs. Venmo: Overview, Pros and Cons

What Is Cash App?

Cash App is a mobile payment service that allows users to send, receive, and request money from friends and family. It offers convenient features such as peer-to-peer transfers, cash cards, and investing options. Users can send up to $1,000 within a 30-day period before verifying their identity, and up to $2,500 per week after verification. Avoiding a 3% transaction fee for credit card payments can be done by using money received within the app or paying with a debit card.

Cash App works in both the U.S. and U.K., offering possible international transfers between the U.S. dollar (USD) and the British pound sterling (GBP). 

Cash App Pros

  • No fee for debit card payments and bank cashouts
  • Buy stocks and Bitcoin within the app
  • Offers banking services and a debit card
  • Free tax preparation

Cash App Cons

  • Charges apply for other transactions such as credit card payment or instant cashout
  • Limited international transfers

What Is Venmo?

Venmo is a mobile payment app that allows users to send, receive, and request money easily. It also allows for direct deposit of paychecks and purchasing of cryptocurrencies. There are limits on how much money can be sent each week, but these limits can be increased by verifying your identity.

With Venmo, you can have your paycheck deposited directly into your Venmo account. Venmo also allows you to purchase cryptocurrencies. Before verifying your identity, you can send up to $299.99 per week. After verifying, you can send up to $5,000 per week via Venmo and can send up to $999.99 to your bank each week.

Venmo Pros

  • Easily split bills with friends and family
  • Instant transfer options
  • High send limits
  • Free cashout option
  • Buy cryptocurrencies
  • Venmo teen account option

Venmo Cons

  • Automatically shares your transactions with friends, but you can change the setting.
  • Additional fees in certain transactions 
  • Only works in the U.S., no international transfers

Cash App vs. Venmo: User Interface and User Experience

Both Cash App and Venmo offer a good user interface and a clear overall user experience. Users rate both apps’ design, ease of use and intuitiveness highly. When setting up an account on either platform, you must verify your identity to unlock all features and higher sending limits. 

Some Venmo users complained of accidentally sending money to the wrong person with the wrong user name, but that could happen in either app. 

Cash App vs. Venmo: Transaction Fees and Limits

The transaction fees and limits associated with Cash App and Venmo are similar. But there are also a few differences between the two.

Cash App Fees and Charges

  • 3% credit card processing fee
  • 0.5% -1.75% fee for instant deposits (minimum fee of $0.25)
  • $2 fee for ATM transactions
  • 2.5% fee per transaction for business accounts
  • 2.75% fee for accepting credit card payments
  • Weekly send limit of $2,500
  • Free transfers to bank accounts
  • No charges for debit card payments

Venmo Fees ad Charges

  • 3% credit card processing fee
  • 1.75% instant cashout fee ($0.25 minimum and $25 maximum)
  • $2.50 fee for ATM transactions
  • 1.9% fee plus $0.10 per transaction for business accounts
  • Weekly send limit of $5,000
  • Free transfers to bank accounts
  • No charges for debit card payments

Cash App vs. Venmo: Security and Privacy Measures

Regarding security and privacy measures implemented by Cash App and Venmo, both offer comprehensive security measures to keep payments and data safe. Venmo isn’t insured by the Federal Deposit Insurance Corporation (FDIC), which makes Cash App the winner for storing funds long term as it has an FDIC-insured bank option. 

When you verify your Cash App account, you will receive a checking account number and routing number to hold cash balances with banking partners. That means your Cash App account can be insured for up to $250,000 per customer. 

Cash App vs. Venmo: Integration And Compatibility

Venmo can integrate with PayPal and offer an additional payment option, especially for businesses. In addition, Venmo allows you to buy cryptocurrencies and integrates with popular crypto apps. As Venmo is a popular sharing app, sending money or splitting bills with family and friends is easy.   

Cash App integrates with banks to provide FDIC insurance and also offers integrations that allow you to purchase either stocks or cryptocurrencies. Cash App integrates with popular crypto apps like CoinLedger and ZenLedger as well as Apple Pay or Google Pay. You'll also have a debit card so you can also make ATM withdrawals.

In addition, Cash App supports both USD and GBP, allowing international transfers between the U.S. and U.K. Cash App is the winner if you’re looking for the flexibility of traditional investments, cryptocurrency and a bank account.  

Cash App vs. Venmo: Account Setup and Verification Process

Both Cash App and Venmo ask users to verify their accounts to access all features. Cash App only states that you need to provide your full name, date of birth, and address for security purposes. You must be 18 or older to use Cash App. 

Venmo requires you to provide a valid ID, address and Social Security number. It may ask you for supporting documentation, like proof of address or Social Security number. Valid forms of ID for Venmo include:

  • U.S. passport
  • Driver’s license
  • U.S. government-issued ID
  • Department of Homeland Security (DHS) card
  • Tribal ID card

Cash App vs. Venmo: Supported Platforms and Devices

Both Cash App and Venmo are available on iOS and Android devices as well as through web browsers. Cash App also allows you to access a desktop application, although with limits. Venmo offers a desktop app where you can cash out, but you can't purchase something or send money unless you use the app or a web browser. 

Cash App vs. Venmo: Transfer Speed and Availability

Standard cash-out transfer times for Cash App and Venmo are similar. It takes one to three days for a standard withdrawal. Peer-to-peer transfers on both apps are instant. Instant bank transfer options come with a fee.

Regarding restrictions or delays users may encounter when accessing funds, each app makes general statements about possible delays.

According to Cash App, it may “limit your ability to transfer funds to your bank account, based on the circumstances. For example, we may delay transfers while we screen for fraud or risks.”

According to Venmo, it may “restrict the use of your Venmo account, including any business profile, if the selling activity through the account, including any business profile, reaches certain thresholds, involves certain activities or violates any terms between you and us.” It may also implement payment holds for businesses.

Cash App vs. Venmo: Payment Options and Features

Payment options and features offered by Cash App and Venmo are similar. Both allow you to send and receive money, make purchases, split bills and set up recurring payments. 

Cash App allows you to send and receive money via balance, debit or credit card. You can also get a debit card, receive direct deposits and invest in stocks for as little as $1. You can also buy cryptocurrency.

Venmo allows you to send money via Venmo balance, bank account, debit card and credit card. You can also receive money and purchase cryptocurrency. 

Is Cash App or Venmo Better?

Is there a clear winner between Cash App vs Venmo? Not really. Both are excellent; your choice depends on how you use the app. Both apps offer easy transfer and payment options and the ability to buy cryptocurrency. Beyond that, each serves a different purpose, so you can use both. 

Cash App is better for storing money with FDIC insurance. It also offers options to invest in stocks. Venmo has higher weekly sending limits, making it more convenient for people or businesses who move more money regularly. 

Using Venmo and Cash App

From the above, it’s clear that both Venmo and Cash App have significant strengths. There’s no need to choose one or the other. Venmo and Cash App are low-cost, easy-to-use financial tools that can be a part of your financial plan. Adapt your strategy with each app based on how you move and invest money, and take advantage of the special features of each app.

Frequently Asked Questions

Q

Is Cash App or Venmo better for sending money to friends and family?

A

Both Venmo and Cash App allow you to send money to friends and family, although Venmo may be the more popular app for this purpose.

Q

Does Cash App charge a fee?

A

Yes, Cash App does charge a fee for certain transactions. For example, there is a 3% fee for sending money using a credit card. Additionally, fees may apply for using certain features or services within the app. However, they do not charge a fee for sending money from a linked bank account or receiving money from another Cash App user. It’s important to check the app’s terms and conditions for a full list of applicable fees.

About Alison Plaut

Alison Plaut is a personal finance writer with a sustainable MBA, passionate about helping people learn more about financial basics for wealth building and financial freedom. She has more than 17 years of writing experience, focused on real estate and mortgage, business, personal finance, and investing. Her work has been published in The Motley Fool, MoneyLion, and she is a regular contributor for Benzinga.