Cash App vs Venmo Which Money Transfer App is Better?

Cash-App-vs-Venmo

Wondering what the deal is with Cash App vs Venmo? You're in the right place! Read on to discover who reigns supreme.

People often wonder, is Venmo better than Cash App for money transferring?

Or, is Cash App better than Venmo?

These two payment apps are similar, yet different in many ways.

We’ll touch on that as well as specific features you may be interested in with each payment app.

Whether you’re sending money, receiving money, or trying to transfer money, we’ve got you covered with this Cash App/Venmo comparison.

In this article, we’ll discuss:

Both Venmo and Cash App allow you to send money and receive money similar to a bank account, but with more anonymity and more control (and without the hefty monthly fee).

We’ll guide you through the ins & outs of each peer-to-peer payment app.

Which one is your fave?

Let’s find out!

Similarities & Differences Between Cash App and Venmo

Similarities & Differences Between Cash App and Venmo

Is a digital wallet app such as Cash App or Venmo a good way to send money, receive money, transfer money, and complete instant transfers & direct deposits in lieu of a bank account?

Venmo’s platform features a more social feel, which allows users to share messages detailing how they’ve spent their money. Cash App offers a physical Cash Card that can be used to withdraw money at an ATM. Users can also buy and sell Bitcoin right from the mobile app.

Benefits of Cash App

These benefits include:

  • Signup is quick & easy & hassle-free.
  • It’s free to use, so you don’t have to pay anything out of pocket to get the app or load your Cash App balance with money.
  • You can send and receive money for free. (Venmo charges a fee for mobile transfers.)
  • Cash App offers a higher maximum amount than Venmo: $10,000 vs Venmo’s $7,999 .
  • There are more payment options available on Cash App ($Cash Card only).
  • On Cash App, you can put your payments “on hold” if necessary. [1]
  • The “cashtags” feature allows users to share their unique links directly from Twitter or Facebook. 
  • You can link multiple bank accounts together in order to transfer funds between them.

Also, if you’re interested in getting started with investing, Cash App lets you buy Bitcoin, manage your investment, and even sell it through their app.

You can also invest in stocks through the app.

For a deeper dive into these benefits, check out our review article to find out…is Cash App legit?

Benefits of Venmo

These benefits include:

  • Venmo is free and quick to set up.
  • You can use Venmo with other social media platforms, such as Twitter, Facebook, LinkedIn, and even Gmail.  
  • Venmo has more payment options available than Cash App: “friends and family” transfer, prepaid cards, business accounts , Apple Pay , Android Pay , etc .
  • On Venmo you can schedule payments for later if necessary. [2]
  • The app allows users to see what their friends are buying or doing on a public newsfeed-style page.

Which app should you choose?

The answer may depend on the way you use your Venmo/Cash App features.

Let’s keep going to really hone in on what will work best for you.

Can You Send from Cash App to Venmo Account?

send money to Venmo

If you want to send money from Cash App to a Venmo account, the answer is YES.

Here’s how:

First, add the Venmo card to the Cash App account. Then tap on ‘Cash Out’ & choose the amount to transfer. Now you can select a standard or instant transfer. Either way, the money will be transferred to the Venmo account.

This option works well to send and receive money without a bank account or debit card if there are 2 separate accounts already set up and being used.

Pretty easy, huh?!!

Can Venmo Send to Cash App?

If you want to send money from Venmo to Cash App, you will need to have a Cash App account set up already.

Also, you’ll have to send it as a “friend pay” (so the person viewing your Venmo transaction can see who paid them).

This is because of how Venmo works; you don’t just make an instant money transfer like Paypal, but you actually write out a new message and post it on your timeline.

So the receiver will be notified when they log into their Venmo account and view the payment (as well as seeing who paid them).

And to make this money transfer?

Go to Venmo and open up the app.

You will then proceed to fill in your Venmo username (or email) as well as their Cash App username.

Once all that is filled out, it will send them a notification of payment.

If they log into their account, they can see who sent them money and what it was for (usually though it’s just a quick message stating that person paid them).  

Is Cash App or Venmo Better?

Cash App or Venmo better

Is Cash App the same as Venmo?

No.

Similar, but not the same.

One of the biggest differences is the wide array of uses that Cash App offers, including the ability to buy and sell both stocks & Bitcoin. Venmo focuses mostly on sending & receiving money and does it well, but for users looking for more versatility packaged into one app, Cash App may be the better option.

It all depends on which features you’re looking for.

Also, something to consider is getting referral bonuses if you’re into that sort of thing.

Check out our referral code guide on using referral code hacks for Cash App for more info.

Cash App vs Venmo Fees

Cash App charges fees for just a couple of its features.

Cash App vs Venmo Fees

The fee structure for Cash App includes:

  • Cash Out – 1% + $0.25 per transaction (min $1)
  • Auto investment – $1 / month automatic investment to a selection of stocks including Apple, Amazon, Netflix, and Facebook.

One thing to note about Venmo fees is that Venmo does not charge any network transfer fees.

Is this good news?

It sure is if you’re sending money in between two users using the same financial institution!

This is because they partner with some banks to allow transfers to take place without additional charges.

For example…

A bank can pay another bank when a user sends money through either payment app.

So if you have money in your Chase bank account, and send money to a Capital One 360 customer – your money will go through without any fee.

The only time they charge fees for this service is if you send money between two different banks or financial institutions.

This is how Venmo makes money.

They charge the person receiving the payment for their services in facilitating the transaction.

Does Either Cash App or Venmo Work with Zelle?

Quite soon, we’ll be able to say that yes, Cash App works with Zelle for instant transfers.

Venmo already has this feature.

Once a Venmo account is linked, you can transfer money to anyone who has a Zelle bank account.

With the Venmo app, it only takes a few taps to send your friend cash from your connected debit card or bank account using Zelle.

Is Cash App or Venmo Safer?

Cash App is safe. Venmo is safe.

But how?

Cash App’s safety features include two-step verification, automated fraud monitoring and a $0 liability guarantee. [3]

Venmo’s security features include two-factor authentication, which is the same thing Cash App offers.

Venmo protects its users with bank-level security & encryption to keep their information secure, and the app has never been hacked , unlike many banks and other financial institutions that have fallen victim to cyber attacks. [4]

Cash App utilizes the same level of security to protect its users’ personal info from hackers while also providing a decentralized peer-to-peer payment method for crypto traders.

Other Payment Apps to Consider

When it comes to peer-to-peer payments, there are several options available today.

A lot of apps like Cash App & Venmo out there have similar features and other benefits, too.

money-transfer-apps

Each of the following services offers similar functionality, with minor variations in features and fees.

PayPal

Having a PayPal account is a great tool that’s well-rounded overall and quite flexible. [5]

You can get a debit card along with a very functional mobile app, and you can connect all of your other credit and debit cards to use PayPal as the middle man when making purchases (no revealing your bank details to strangers!).

Zelle

If you’re really utilizing a linked bank account (or more than one) for transferring money, getting direct deposit payments and sending money to more than just friends & family, Zelle specializes in these types of transactions.

This is a network of banks that allows you to send and receive money through your bank’s app or website.   [6]

Zelle charges no fee for their service and doesn’t require an account to sign up.  

That said, they aren’t as widely adopted as either Cash App or Venmo, so look for your bank on their supported list before signing up (many banks have yet to add themselves.)

You must be able to link with a participating bank, so keep that in mind before you commit and forget about other apps that may work as well.

Facebook Messenger

If you’re simply looking to send money for the babysitter or pay friends or family, this is a super quick & easy alternative to those other popular payment apps. [7]

Google Pay

If you have a Google account, this is a great payment service to use as a mobile wallet or when making online purchases. [8]

Remitly

If you’re specifically looking to making international payments, transfer funds (international transfers), or request money from an international source, this is a great option. [9]

Cash App vs Venmo Users’ FAQs

Do both apps allow for instant transfers?

Yes, they do. Cash App does instant deposits for a small fee.

What about Venmo? Venmo does not allow for instant transfers from a bank account but instead, you’ll receive an e-mail to notify you that your payment was made (which definitely takes longer than the Cash App).

How do each of these apps handle direct deposits?

For direct deposits with Cash App, you’ll need a linked bank account and, when you receive direct deposits, the money will go directly to your Cash App balance. For Venmo, you can choose whether or not you want to receive direct deposits into your linked bank account or directly through Venmo.

Resources

  1. Cash App Authorizations, Refunds & Voided Payments
  2. Venmo Payments & Requests
  3. Cash App Safety & Security
  4. Venmo Security
  5. PayPal Home Page
  6. Zelle Home Page
  7. Sending Money with Messenger
  8. Google Pay Home Page
  9. Remitly Home Page