Who’s the best? Cash App vs. Venmo vs. Zelle. Let’s explore that in this post.
Unlike other payment apps, Venmo has a touch of a social media feature in it. Upon creating an account on Venmo, you have the option to sync your account to your contacts and Facebook friends.
When you connect your Facebook, it allows your friends to view your transactions. They can see to whom you’re sending money or who paid you.
The social media aspect in Venmo also lets your friends see memos that contain why you are paying or why you are receiving money.
While this feature adds a bit of a unique and fun concept to payment apps, it can also be a disadvantage. You may not be comfortable sharing details of your transaction with your friends.
There are other options for payment service apps like Zelle or Cash App for those concerned with privacy issues. [as a sidenote: we actually signed up with Step Card for our teenager as an alternative to the Greenlight card and have been extremely satisfied with it].
Cash App and Venmo Have Debit Cards
If you want to transact through peer-to-peer payment systems while having your debit card, Cash App and Venmo offer that.
The debit cards offered by these two P2P apps connect your account balance to them. Simply, it does not connect to your checking account. You transact with it like you would with a bank debit card to transfer, pay and withdraw.
However, since your physical cash cards connect to your Cash App or Venmo account, make sure you have enough money to use for transactions. If you attempt to pay that exceeds your balance, you may pay overdraft fees.
Zelle Puts Money in Your Account Instantly
Cash App vs. Venmo vs. Zelle Continued…
Venmo and Cash App let you keep money in your account balance, while Zelle does not store it in your account.
Zelle does not keep a balance because the funds you receive from the app transfer directly to your bank account.
This setup is a good thing. Compared to Venmo and Cash App, Zelle provides a more convenient and cheaper way to receive payments.
Venmo and Cash app charge fees if you need the money rush transferred to your bank account. If you do not want to pay the fees, you have to wait for at least a day or two before receiving it.
Another thing to mention, the money kept in Venmo or Cash App does not passively grow. Meaning, keeping the money in these apps will take out the chance to earn from interest.
Because Zelle directly transfers money to your bank account, the funds stored can grow from banks’ interest. It gives you the option to make money passively.
Related: How does Venmo make their money?
Access Zelle Without The App
You can access Zelle by downloading its mobile app, but there is another direct way to use it.
If your credit union or financial institution offers Zelle in their services or apps, then you can access Zelle through their online banking. You can also check if it is available in their mobile app.
An example of a financial institution that offers this convenience is First Alliance Credit Union. Not only can you use Zelle by logging into online banking, but they also have it on their mobile app.
Cash App, Venmo, And Zelle All Are Safe
You may be wondering how safe electronic payments are. Security issues are possibly the top concern of people who are using or planning to use these apps.
Which of these three peer-to-peer payment apps is the most secure and safest? According to this article by Consumer Reports, Cash App, Venmo, Zelle, and other P2P payments are generally safe, but users still need to be careful of the possible risks.
Fraudsters are rampant in this space, especially if they are knowledgeable of the technology. These people may come up with schemes that they can use to lure you into paying them.
Sad to say that despite the upgrades in the safety issues, there’s still no 100% guarantee that you get the money scammed from you. In this situation, you have to be cautious of the people you are transacting with while using P2P payment apps.
Cash App vs. Venmo vs. Zelle — at least you can feel comfortable that they are all safe.
Zelle Is Free at First Alliance Credit Union
While these three apps serve the same purpose, they also have specific differences in their features. It’s only a matter of personal liking whether you’ll be more comfortable with Cash App, Venmo, or Zelle.
You have to consider if you are fine sharing details of your transaction to the public, you want to have a physical cash card, or if you can wait up for the delay before your payment reaches your bank account.
Trying out which works best for you may be tough but if you are not yet sure which app is suitable for you, try Zelle for free if you are a First Alliance Credit Union member.
It is available for members of the union and accessible using their online banking and mobile app. The process is easy to understand, convenient, and transfers money quickly on your account.