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Cash App and Venmo are peer-to-peer payment apps that make it easy to send and receive money — all through your mobile phone. Both also offer helpful features, including ATM withdrawals, instant transfers, and various payment methods.
Because their primary services are so similar, it’s difficult to say which app is better. I personally use Venmo for peer payments, and so do 90 million other users (as of 2022). I think there’s a lot to be said for the ubiquitousness of the app. After all, you don’t often hear someone asking, “Can I Cash App you for this?”
On the other hand, Cash App does have a couple of features that set it apart. When it comes to international transfers, investing options, and tax filing features, Cash App stands out. If those features appeal to you, Cash App may be the better choice.
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Cash App vs. Venmo
Cash App and Venmo have similar fee structures for their primary services, including sending and receiving money. But you might find a few differences in each app’s transfer limits and payment methods. This table gives a quick overview of how the two apps compare.
| Cash App | Venmo | |
| Best for |
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| Fees |
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| Transfer limits | Unverified accounts:
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Unverified accounts:
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| Payment methods | Send money:
|
Send money:
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| Transfer speed |
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| International transfers? | Yes, between the U.S. and U.K. | No |
| Visit Cash App | Visit Venmo |
What both apps excel at
Money apps often overlap in many ways, and it’s no different with Cash App and Venmo. Both mobile payments apps offer the same primary service of sending and receiving money. Here are some of the features and benefits that Cash App and Venmo share:
- Sending and receiving money: Both apps' main feature is sending and receiving money, including sending money with a credit card. So rather than carrying cash on you at all times, you can pull out your phone and pay someone with either app. This can be helpful if you split rent among roommates, want to pay your friend back for a nice meal they covered, or are divvying up vacation costs among a group.
- No hidden fees: Both apps are free to download, and neither charges a monthly maintenance fee. You also won’t have to pay high fees to send and receive money unless you want a faster transfer.
- Transfer limits: Both apps have sending and spending limits for new users that can be increased if you go through a verification process. This process typically includes sending documentation or additional personal information.
- Transfer speed options: Cash App and Venmo have standard or instant transfer options. Standard transfers are typically free and take one to three business days. Instant transfers on Cash App have a transaction fee that ranges between 0.5% and 1.75%. For Venmo, that fee is 1.75% up to $25.
- Supported devices: It’s simple to get started with either app on any iOS or Android device or through a web browser. The Cash App and Venmo apps are available on the App Store and Google Play.
- Additional features: Both apps also offer debit cards and ways to invest your money. You don’t have to use these features, but some people might find them helpful.
4 important differences between Cash App and Venmo
Both Cash App and Venmo were designed for sending and receiving money, but they also have other uses.
Payment methods
You typically have to choose a payment method if you want to send money to someone else using a payment service. Both Cash App and Venmo accounts offer payment methods such as using a credit card, a debit card, a linked bank account, or your account balance. However, with Cash App, you can also use Apple Pay and Google Play by connecting them to your Cash Card.
Venmo offers an Amex Send feature that lets you use American Express credit cards without paying the standard cash advance credit card fee. Keep in mind that you likely won’t receive any rewards (if applicable) for credit cards used this way, but it’s still a unique feature that’s probably more useful than what Cash App offers.
Winner: Venmo
International transfers
Venmo requires you to be physically located in the U.S., which means users in other countries can’t use its services. I found this out the hard way at a flea market in London. However, you might still be able to send and receive money from other U.S.-based Venmo users, even if you’re traveling abroad. Just don’t expect to use it with any non-U.S.-based users. To be able to shop at that flea market, I had to go get cash from an ATM.
Cash App beats Venmo for international transfers. Cash App still isn’t available everywhere, but it is available in the U.K., which increases its functionality worldwide. That’s not a much wider reach, but it’s still more than what Venmo offers. (And it would’ve helped me during my shopping conundrum!)
Winner: Cash App
Investing
Investing is relatively new on Cash App and Venmo and not as comprehensive as the best investment apps. Cash App users can buy, sell, and trade Bitcoin through the app and invest in stocks. While Venmo doesn’t allow you to invest in stocks, you can purchase popular cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. However, I wouldn’t recommend keeping large sums of crypto on these platforms. You’re gonna want to transfer that over to your crypto wallet if you plan to hold it securely long term.
This category has no overall winner because it depends on your situation and investing preferences. For example, if you’re more interested in the cryptocurrencies offered by Venmo and don’t want to invest in stocks, Venmo may be a more suitable option. But if you want to invest in stocks and Bitcoin, Cash App might make more sense.
However, I would personally trust an established investing-specific app over either Cash App or Venmo. If you feel the same, this category may be a non-issue.
Winner: Tie
Filing taxes
In addition to letting you send, receive, and invest money, Cash App allows you to file taxes and receive tax refunds. The feature came out in 2022, and it’s definitely unique to this app. What stands out most to me about this feature is that it’s free if you have a Cash App account. No more expensive tax software!
Venmo doesn’t have anything like this, making Cash App the clear winner here.
Winner: Cash App
Which app should you choose?
The better app for you between Cash App and Venmo comes down to multiple factors, including your lifestyle and financial preferences. Both apps are easy to use for sending and receiving money, and there aren’t many fees to worry about. For example, I don’t pay any fees since I only use the apps for money transfers and stick to standard transfer times.
However, you might prefer to use one app over the other depending on which one your friends and family use. For me, it wouldn’t make sense for me to use Cash App for peer-to-peer payments, as most people in my life use Venmo.
If you’re interested in investing in stocks or cryptocurrency, you may want to consider what your priority is. Cash App users have more options to invest in stocks, while Venmo users have more cryptocurrency opportunities. Of course, you can always rely on a different app altogether to manage your investments, like I do.
Review each app’s differences and see how their features align with your financial goals. Keep in mind that these aren’t the only payment apps available. Many of the best banks offer different money transfer options.
FAQs
Is Cash App safer than Venmo?
Not necessarily. Cash App and Venmo are money transfer apps, which are inherently risky since their services involve sending money to other people. But if you stick to sending money to friends and family, you likely won’t run into any issues involving scams. Additionally, both apps use encryption and other protection methods to help ensure your account information is kept secure.
Are Cash App and Venmo FDIC-insured?
No, not entirely. If you have a Cash Card with Cash App, the money in your Cash App account balance is covered by the FDIC through partner banks (this is called “FDIC pass-through insurance”) in case of bank failure.8
Similarly, funds held in your Venmo account are only eligible for FDIC pass-through insurance if you’ve added money to your account via mobile check deposit or direct deposit.
Is Venmo cheaper than Cash App?
Neither Venmo nor Cash App charges account or maintenance fees (more on Cash App fees). You also don’t have to worry about additional fees for sending money as long as you use your account balance or a linked bank account or debit card for the transfer. Overall, neither app is significantly cheaper than the other for sending and receiving money.
Which app is better for paying your friends?
Both Cash App and Venmo make it easy to pay your friends as long as you’re connected through the app or have certain items of the required information, such as an email address or phone number.
However, Venmo focuses on networking with friends and family members and functions similarly to a social media network, emojis and all. Cash App can be used to pay and receive money from anyone if you have their email address, phone number, or $Cashtag. This might make it a preferred way to send money to people you don’t know.
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Cash App Benefits
- No hidden transfer fees when sending money from your Cash App balance or bank account
- Deposit advances as well as simplified reimbursements requests
- Allows for the trading of stocks and Bitcoin directly on the app