PayPal and Venmo are among the most popular online payment channels used today. PayPal is an e-commerce company based in the United States which offers internet money transfer services across countries usually for buying and selling of goods and services. PayPal started in March 2000 and eventually run on its own by 2015. Venmo on the other hand founded in 2009 in the United States where it started as a text-based payment delivery platform. Venmo is usually preferred by users when transferring money to those whom they personally know like families, friends, and maids.
Although both have similarities in functionalities and payment methods, it is still important to know their differences so that you can identify which one will serve you better and efficiently.
Key Differences between PayPal and Venmo
- PayPal is more practical to use for merchandise or commercial transactions such as online shopping and for an online business for selling and buying of products while Venmo is more of transferring funds to people you personally know.
- PayPal has a transaction limit of up to $60,000 and $10,000 for a single transfer. On the other hand, Venmo has a limit of $6,999.99 for all transactions for the last 7 days and the payment done should not be more than $4,999.99 for a single transaction.
- PayPal is globally used while Venmo is only available in the United States.
- Venmo’s bank transfer fees and speed range 1-3 days for free and for instant payment cost 1% of the amount being transferred. However, Paypal’s instant transfer also deducts 1% and the speed of crediting to one’s account for the free transaction is about 1-2 days.
- PayPal charges 2.9% for payment transactions if paid through debit or credit cards while Venmo requires 3%.
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