Cashapp vs Zelle vs Venmo
There are many options these days for sending money instantly to a friend or family member. Leading the market currently are Cashapp, Zelle, and Venmo, but which one is really right for you? Let’s have a quick breakdown of each platform.
Cashapp is an app that works with your bank account and processes payments in under two minutes. The service allows users to transfer, deposit, withdraw and send money domestically or internationally. The fees that cashapp is known to charge are for deposited money (2.5%) and withdraws (3%). Both of which are very reasonable fees.
Secondly, Cashapp is more than just a payment service. With this app, you can also use an integrated feature like Earn, where users can make extra cash by referring friends or completing tasks like surveys and offers.
This ensures that you can make money just by using the app and having your friends use it as well.
With Cashapp you are also able to buy and sell bitcoin. This feature sets it apart from most other payment apps because you can use your cash to buy bitcoin and then transfer that bitcoin for a better price.
Zelle integrates with most banks and allows you to do person-to-person transfers. Unlike cashapp, there are no limits set in place and the transfer will be immediate once approved.
The app is safe and uses a three-tier security feature that monitors suspicious activity at all times. There is also an added layer of safety with Zelle because it can only be used if you have a bank account with one of the supporting banks.
With Zelle, the fees are clear-cut and straightforward. The app charges a flat fee of $0.25 per transaction, which is reasonable considering most other money transferring apps charge at least that much or more.
Some of the banks that support Zelle are Bank of America, Wells Fargo, Capital One, SunTrust, U.S. Bank, etc.
Venmo combines the sending of money and also being a social network. The app allows you to keep track of your transactions and also see what other people are doing, whether it’s paying back a friend, splitting the cost of dinner, or buying new music on iTunes.
For some reason, Venmo charges an extra 25 cents for bank transfers (the same as Zelle). However, the fee is waived if you link your account directly to the bank.
Some people wonder if Venmo is truly secure. The app has multiple security measures, including its “Social Security number guard” feature that locks your profile when it detects suspicious activity.
Others also cite privacy concerns with using Venmo because any transaction you make is visible to the public unless you change the visibility setting.
Overall, which of the three cash transfer apps is the best? There’s no clear winner here. Venmo has the most features, but you’ll need to be wary of its security issues and lack of fee transparency. Zelle is more transparent about fees but lacks some of Venmo’s features.
Cashapp seems to have fewer downsides than Venmo or Zelle, but it charges a steep transaction fee that has led to people not using the app as much, especially since they now have other options.
It’s up to you to decide which one is right for you, but why not use all three apps? It’s good to have options.