Cash App and Venmo apps offer top-notch mobile money transfer and payment services. However, Cash App is more versatile when it comes to the services it offers. Besides the payment and money transfer services it has, Cash App allows you to invest in stocks and Bitcoin and file your federal or state tax returns. So, if you are looking for a more versatile mobile money transfer app, Cash App is a great choice.
Digital payments and money transfers are rapidly becoming the center of people’s lives nowadays, thanks to mobile apps like Venmo and Cash App. This article will compare the two apps to help you choose the right app for you.
Let’s get started…
Cash App Vs Venmo: Similarities
Besides both being P2P mobile money transfer apps, Venmo and Cash App have several similarities in their pricing.
Venmo and Cash App don’t charge their users for sending money using a bank account balance, app account balance, or debit card. These two apps also charge a 3% fee for sending money using a credit card.
Venmo and Cash App also don’t charge users for receiving money in their app accounts. They also don’t charge people for standard money transfers from their app accounts to a linked bank account or debit card.
Cash App Vs Venmo: Differences
While they may look quite similar, Venmo and Cash App have several differences.
- Spending limits: With Cash App, the maximum daily spending limit is $7000, the weekly limit is $10000, and the monthly limit is $25000. With Venmo, you can spend up to $7000 weekly on purchases, send up to $60000 per week, and transfer up to $19999.99 weekly to your bank account.
- ATM withdrawal limits: Cash App’s ATM withdrawal limit is $1000 per transaction. On the other hand, Venmo has a $499 daily ATM withdrawal limit.
- Funding methods: While both apps allow users to receive money via credit cards, debit cards, bank transfers, and direct deposits, Cash App also allows individuals to receive funds via Google Pay and Apple Pay. Venmo, on the other hand, also accepts deposits via checks, but this method may be subject to high transfer rates.
- Availability: Cash App is available in the US and the UK, while Venmo is limited since it’s only available in the US.
Cash App Vs Venmo: Pros and Cons
Pros of Cash App
- No charges on basic services: Cash app doesn’t charge its users for basic services offered on the platform, such as sending and receiving money and investing in stocks and Bitcoin within the app. What’s more, there are no inactivity or monthly fees charged.
- Free ATM withdrawals for direct deposits: This app also offers free ATM withdrawals for funds deposited directly into your Cash App account. However, keep in mind that this advantage applies if you have at least $300 deposited directly into your account.
- There’s an optional free debit card: Cash app offers users a free, customizable debit card known as Cash Card. This card is connected to your Cash App account and can be used anywhere VISA cards are accepted, both in physical and online stores.
- Cash Card users get to enjoy discounts: Cash App offers Individuals with a Cash Card a chance to get discounts on their day-to-day expenditures using their debit card through Cash Boosts. However, knowing the rules and regulations concerning these Cash Boosts is essential to make the most out of them. For starters, they can only be activated one at a time. These Cash Boosts also have an expiration date and can have minimum purchase and discount limits. Finally, these Boosts are not applicable on Cash back transactions.
- Cash bonus: Users get a cash bonus when their friends and family sign up for a Cash App account using their referral code. On Cash App, you, your family, and your friends can get a cash bonus if they use your referral code when they open an account.
- You can invest their money on Cash App: This platform allows you to buy and sell stock shares in your favorite companies for as little as $1. What’s more, you can also invest in Bitcoin on the platform.
- Cash App has a tax filing feature: This app has a taxes feature that allows individuals to file their state and federal taxes on the go. And the best part? It doesn’t charge you anything for these services.
Cons of Cash App
- Bitcoin and stock investment balances on the app are not FDIC-insured: The app clearly specifies that money earned through investing in Bitcoin and stocks on the platform is not FDIC-insured. So, if Cash App happens to shut down, you’ll lose all the money you’ve made through investing in stocks and Bitcoin on the app.
- Money on your Cash App account is only FDIC-insured up to a certain limit: The FDIC only covers up to $250000 on your Cash App account. If the app goes out of business, you can only recover up to $250000 of the money in your Cash App account.
- There’s a withdrawal limit on the Cash Card: The maximum amount you can get as cashback from a store checkout is $1000 per day and $1000 per week. And the maximum withdrawal from an ATM using a Cash Card is $1000 per transaction.
- There’s a spending limit on the Cash Card: Cash App has set limits to the amount of money Cash Card users can spend using their cards. So, the maximum amount you can spend on your card is $7000 per transaction (it’s also the daily limit), $10000 per week, and $25000 per month.
- Newly opened Cash App accounts are automatically labeled as restricted accounts: According to Cash App’s Terms and Conditions section, newly opened accounts are automatically restricted. This means you cannot make payments to another Cash App user using funds from your account unless you upgrade it.
Pros of Venmo
- Most of its basic services are free: Like Cash App, most of Venmo’s basic money transfer services are free. For starters, no charges are incurred when you receive money in your Venmo account. It’s also free to send money to another Venmo user using funds from your Venmo account, traditional bank account, or debit card. Finally, no fees are charged when you make a standard withdrawal from your Venmo account to your bank account.
- Venmo has an optional debit card for users: Similar to Cash App, Venmo also offers users a debit card they can use anywhere MasterCard cards are accepted. The card is linked to your Venmo account, and you can use it to make in-store and online purchases and withdrawals from an ATM.
- There are cashback rewards: Venmo also offers cashback rewards to debit card users if they use it to make purchases at participating merchants. So anytime you make a purchase, your bonus is automatically deposited into your Venmo balance.
- Venmo also offers a credit card: Venmo took it a notch higher by introducing a credit card. So, with this credit card, you can use it to make payments anywhere VISA cards are accepted, then pay the credit bill later using the funds on your Venmo account or a verified bank account. Venmo doesn’t charge annual fees to its credit card users. And the best part? You get to enjoy cashback rewards when using your Venmo credit card to purchase at participating stores.
- There’s an opportunity to invest in cryptocurrency on Venmo: Venmo allows its users to purchase and sell a variety of cryptocurrencies on the platform for as little as $1. The digital currencies available for purchase on the app include Bitcoin cash, Bitcoin, Litecoin, and Ethereum.
Cons of Venmo
- Your transactions are made public by default: All Venmo users’ transactions on the platform are made public. This means anyone with a Venmo account can see everyone else’s transactions on the public feed, but they cannot see the transaction amount. Fortunately, there’s a way you can make yours private in the settings tab.
- It is only available in the US: Venmo can only be accessed by US residents. This means you cannot sign into your account while abroad.
Cash App Vs Venmo: Pricing
Cash App and Venmo don’t charge their users monthly or annual maintenance or inactivity fees. However, you will incur charges when using some of their services. Here’s a breakdown of their charges.
Cash App and Venmo support credit cards from major card networks, including MasterCard, VISA, Discover, and American Express. This allows users to send money or make payments through the apps using a linked credit card from the above card networks. Sending money through Cash App or Venmo using your linked credit card will cost you 3% of your total transactions.
Venmo and Cash App have two options in regard to cashing out your app account balance to a linked bank account or a debit card. The standard deposit option is free, but it takes 1-3 business days to process.
Cash App charges users $2.50 for withdrawing money from their Cash App accounts at an ATM using their Cash Cards. Remember that most ATMs will charge extra fees for using an ATM that doesn’t belong to their bank.
Venmo charges a $2.50 fee for ATM withdrawals using a Venmo debit card and a $3 fee for cashback transactions. You may also incur additional charges from the ATM owners.
However, Cash App doesn’t charge people for withdrawing money deposited directly into their Cash App account. But your direct deposits have to amount to at least $300 to enjoy this benefit.
If your direct deposits reach $300, Cash App will reimburse the ATM fees for 3 of your ATM withdrawals every 31 days. And the app will reimburse up to $7 of the ATM charges for each withdrawal.
Venmo also doesn’t charge its users an ATM withdrawal fee if they withdraw their money from a MoneyPass ATM.
Cash App doesn’t charge trading or commission fees for investing in stocks on the platform. However, government agencies like the SEC may charge you trading fees.
Regarding cryptocurrency investment, Cash App charges Bitcoin transaction fees depending on the size of one’s transaction. So, if you want to buy Bitcoin worth $200, you will receive approximately $196 worth of Bitcoin, meaning you’ll have paid about $4 in transaction fees.
You may also be charged for Bitcoin withdrawals. On the other hand, Venmo also charges cryptocurrency transaction fees depending on the amount one has used to buy the digital currencies.
Cash App Vs Venmo Pricing Comparison Table
Here’s a head-to-head comparison between Cash App and Venmo’s pricing.
|Venmo Charges||Cash App Charges|
|Sending money using a linked credit card||3% of the total transaction||3% of the total transaction|
|Sending money using the app’s account balance, linked debit card, or a bank account||$0||$0|
|Standard money transfer||$0||$0|
|Instant money transfer||1.75% (a minimum of 25 cents to a maximum of $15||0.5-1.75% (a minimum of 25 cents)|
|Investing in Cryptocurrency||Transaction fees are dependent on the worth of the digital currencies purchased||Transaction fees are dependent on the worth of the digital currencies purchased|
|ATM withdrawals||$2.50 for domestic ATM withdrawals and $3 for cashback withdrawals||$2.50|
Who Wins: Cash App or Venmo?
|Best for||Cash App is best for individuals looking for a versatile mobile transfer app and wants an app that does more than receive and sends money.||Venmo is best for individuals who want a dedicated mobile transfer app. It’s also best for people looking to get started in cryptocurrency investment.|
|Top Features||Send and receive money on the appMake payments using the funds on the appBitcoin investment featureStock investment featureATM withdrawals featureCash Card debit cardCash App taxes filing feature||Send and receive money on the appMake payments using funds on the appCryptocurrency investment featureATM withdrawals featureDebit and Credit cards offered|
|Availability||Available in the US and the UK||Available in the US|
|Funding Methods||Credit cardDebit cardBank transferGoogle PayApple PayDirect deposits||Credit cardDebit cardBank transferDirect depositsChecks|
Both Cash App and Venmo are top-tier mobile payment apps. However, Cash App offers more features than just basic mobile payment features. Its tax filing feature that allows people to file their state and federal taxes is a plus.
Cash App’s stock shares feature enables users to buy and sell stock shares in their preferred companies, making it more preferable. It’s also available in the US and the UK, which is another plus.
On the other hand, Venmo comes with a ton of beneficial features when it comes to digital payments. It also offers credit cards, which is an advantage.
Venmo is also diverse when it comes to cryptocurrency investment. However, it is only available in the US and doesn’t have additional financial features like Cash App. For this reason, Cash App is the winner here.
There’s no denying that Cash App and Venmo are great P2P mobile money transfer apps. Both apps offer excellent mobile payment features and other finance features that users find highly beneficial.
However, Cash App’s versatility in terms of having a tax filing feature and being available in the US and the UK gives it an upper hand. So, Cash App is great for people looking for an app that offers more than just sending and receiving money services. It’s also a preferable option for those looking for an app that is not limited to US residents.
If you’d like to know how Cash App compares to PayPal, read this article.