Venmo vs Square: Which is Bettter? [2021]

venmo vs square

Venmo vs Square – In today’s world, the mobile payments app has made it easier to transfer or receive movie within a few seconds, from anywhere. More and more people now depend on digital transactions via their mobile phones as it is secure, safe, simple and fast.

The rise of mobile payment apps has proved that people are always on the search in discovering news ways to transfer or receive money. Venmo and Square are such mobile payments apps that makes transacting money quite easy. You can transfer money with just a few taps on your screen.

So, you might be wondering which of these payment services you should use to send money? Wondering which is the best option? Don’t worry, we’ll help you with that! In this article, we’ll show you Venmo vs Square comparison that’ll help you select between Venmo or Square.

Venmo vs Square: Comparison

Both Venmo and Square offer nearly the same services, but are quite different in their own way. Read on further to know more about Venmo vs Square and how they compare.

Venmo

Venmo is a mobile payment platform where users can transfer funds to others through a mobile app, and both the receiver and sender should live in the U.S. Users can be able to link their debit cards, bank accounts or credit cards to their Venmo account. Otherwise, users can order a Venmo MasterCard and pay through it.

venmo

When a user doesn’t have enough funds in the Venmo account while making a transaction, it will automatically withdraw the required funds from the registered bank account or card. Paying with a debit card or bank account is completely free, but payments through credit card have a 3% fee for every transaction.

Square

Square is an American financial services and digital payments company that accepts credit card payments by linking to a mobile device app. Square’s products line consists of Cash App that lets users to receive and send money for free via a mobile application, and Square Point-of-Sale, a free application allows merchants process payments through app.

Unlike any other credit card processing businesses, Square doesn’t need an application or approval process and has no minimum requirements or monthly fees. Every Square account comes with three essential functions: point-of-sale-software, payments and online ordering. It provides an arrat of products within its ecosystem works together to form a whole small business management solution.

Venmo vs Square: How Do They Work?

Venmo

One of the significant features of Venmo is that it doesn’t charge any fee for transferring and receiving money into your bank account or sending money by using your prepaid card, debit card, linked bank account or Venmo balance.

All you have to do is to sign up for a Venmo account through its website or the mobile application, and enter your email address, phone number and bank account information. Also, remember that to receive or send money, both parties should have a Venmo account.

If the recipient doesn’t have a Venmo account, they are considered as a “new user” who is supposed to create an account to accept the money. Users have the ability to hold their Venmo balance or transfer the funds to a savings or checking account.

Square

Apart from receiving and sending payments, you can receive your tax refunds and paycheck through a direct deposit to receive the funds up to two days early. You can also be able to purchase Bitcoin and invest in stocks with as little as $1 using Square Cash App.

square

All you have to do is to create a Square account by using your email address or phone number and the app will allow you select $Cashtag (a unique identifier), which you can share with your friends or family when you wish to receive or send money. You can easily send money by using the recipient’s phone number, email address or $Cashtag.

Venmo vs Square: Comparison

When it comes to Venmo vs Square comparison, they are alsmot similar. The only difference is in the required fees for instant bank transfer, security, spending limits etc.

Security

Security is the most important feature when it comes to Venmo vs Square comparison. Both Venmo and Square are highly encrypted, and lets users to set personal pin codes to protect their accounts. All the transmitted data are encrypted. So, users can be sure that their transactions and bank details are kept private.

However, Square Cash App offers an additional layer of security as each platform access needs a one-time login code which can only be accessed by the actual user. Other people can’t easily access and log through Sqaure without access to the initially registered mobile phone.

Spending Limits

Unless you prove your identity, your weekly spending limit in Venmo is $299.99. Once you have finished your confirmation, you can be able to spend up to $4999.99 per week to pay official traders and send money to friends or family. Your entire weekly spending limit is $6999.99.

On the other hand, when it comes to spending limits in Square app, it allows you to send and receive up to $1,000 per month. You can also increase your limit by authorizing your identity by using your date of birth, name and the last four digits of your social security number. The spending limit on your cash card is $7,000 per day and $10,000 per week, and the maximum amount you can spend per month is $25,000.

  Venmo Square
Fees 0% for sending or receiving money from debit card, prepaid card, balance or linked bank account1% for immediate transfers3% for sending funds by using a credit card   0% for sending payments from linked bank account or Cash App balance1.5% for immediate transfers3% for sending money suing a credit card  
Payment Method Bank account, debit card, credit card Bank account, debit card, Apple pay, debit card, Google pay  
Transfer Speed One to three business days for free withdrawals   One to three business days for standard deposits
Limits $299.99 per week$4,999.99 per week (verified)Weekly spending limit of $6,999.99 Up to $1,000 per month and you can increase limits by verifying your identity      
Ways to Receive Bank account, mobile wallet, debit card, ATM   Bank account, mobile wallet, debit card, ATM
Supported Devices iOS, Android and browser   iOS, Android and browser
Special Features Quick transfers to banks   No need to set up an account

The Bottom Line

So, what wins? What did you choose? It can be quite difficult to choose between them as Venmo and Sqaure’s Cash App are both amazing peer-to-peer money transferring services. Besides sending and receiving money. Square has features that lets you invest in stocks, purchase Bitcoin and receive direct deposits.

Whereas, if you are searching to simple receive and send money, Venmo can be the best option for you. So, we hope the above article on Venmo vs Square has helped you to give a detailed comparison and assisted you to select the best option according to your needs and preferences.

FAQs

Is Venmo better than Square?                                                    

Both Venmo and Square offer nearly the same services as they both allows sending and receiving money online through their mobile applications.

Is Venmo owned by Square?

Square’s product line consists of Cash App and Square Point-of-Sale.

What is a safer Cash App or Venmo?

Both Venmo and Square are highly encrypted, and lets users to set personal pin codes to protect their accounts.

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