Peer-to-peer payment apps have changed the way we send and receive money. However, the sheer number of apps makes it difficult to decide which option is best for your unique financial needs.
Some of these apps have evolved into full-fledged financial services platforms with banking, investments, and more, in addition to money transfers.
Partner with Cash App to take a closer look at the different types of peer-to-peer payment options so you can decide which one is right for your situation. If you are wondering whether to start Cash App, You can open an account and try >>
Cash App started as a platform that facilitated peer-to-peer payment options. Since its inception, it has evolved into a financial services app. Like other apps on this list, you can send and receive cash using your bank account, debit card, or credit card.
Your Cash App Spend account comes with a Cash Card, a Visa debit card. This card can be used anywhere Visa is accepted. If you want to send your salary through Cash App, you can receive direct deposits to this account.
Additionally, Cash App allows you to buy stocks and bitcoins through the platform. If you invest in stocks, fractional share options allow you to grow your portfolio at your own pace.
You can also prepare your taxes for free via the Cash App platform (using Cash App Taxes).
To learn more about Cash App, read our full review.
transaction details
You can send and receive up to $1,000 in 30 days before verifying your identity. After verifying your identity, you can send up to $2,500 per week.
There is a 3% transaction fee when sending money by credit card. You can avoid paying this fee if:
- send cash with debit card
- Receive money with Cash App
When you cash out, you will be presented with a free option that takes a few business days. If you need funds immediately, there is an instant debit card deposit option. However, there is also a fee of 0.5% to 1.75%.
Strong Points
- Standard bank cashout is free
- Free remittance fee with debit card
- Ability to buy stocks and bitcoins
- Banking services complete with Visa debit cards
- free tax preparation
Cons
- 3% charge for credit card transfers
- Instant cashout fee of up to 1.75%
Click here to use the cash app >>
Venmo
Venmo, owned by PayPal, offers a social way to send peer-to-peer payments.
When sending money to someone, you have the option to add their purpose and include an emoji. Venmo’s default mode is to share payments with in-app “friends”. So they could see that you split the check for dinner.
You have the option to send your salary directly to Venmo via direct debit. If you are interested in buying cryptocurrencies, you can start building your crypto portfolio with as little as $1. Currently, Venmo is probably Cash App’s closest competitor.
transaction details
You can send up to $299.99 per week before verifying your identity. Once your identity is verified, you can send up to $60,000 per week with Venmo.
There is a 3% fee when sending money using a credit card. However, if you use your Venmo balance, debit card, or bank account balance, you can send money to others for free.
Once you receive the money, you can withdraw it for free. However, if he can’t wait up to 3 business days, he charges a 1.75% fee to transfer the funds instantly.
Strong Points
- high sending limit
- social element
- Free cash out option
Cons
- 3% charge for credit card transfers
- Instant cashout fee of up to 1.75%
Zell
Zelle is another tool for sending money through many major banks. Zelle is most convenient if your bank offers this feature. However, you can download the app and enroll in this option with your Visa or Mastercard debit card.
The interbank element of Zel is useful. Transfers can clear in as little as 10 minutes.
transaction details
If Zelle is offered through a bank or credit union, your financial institution sets your sending limit (if it’s too low, you can ask them to raise it). For Zelle users without a financial institution partner, the weekly transfer limit is $500.
Zelle itself does not charge fees for sending and receiving money. However, check with your financial institution to see if there are additional fees for using Zelle on your connected account. Unless you have free checks, you may end up paying avoidable bank charges.
Strong Points
- Zelle does not charge transaction fees
- Fast payments to bank accounts
- Offered by most major banks
Cons
- Not all financial institutions offer Zelle
- Relatively small payment limits
- Only one bank account can be linked to Zelle at a time
PayPal
PayPal may be the most famous name in the world of peer-to-peer payments. This was one of the original options, but it is no longer the only way to transfer money between peers.
You can sign up for PayPal with just your email address and phone number. To withdraw cash, you must link your bank account.
transaction details
PayPal offers large sending limits. Some users can send up to $60,000 in a single transaction. However, if you’re new to PayPal, expect a $10,000 limit on a single transaction.
There are no fees for domestic transfers from your PayPal balance or bank account. However, there is a fee of 2.90% + $0.30 for domestic transfers by credit card. For international transfers, there is a 5% fee for all types of transactions.
You can withdraw money to your linked bank account for free, but there is a 1.75% fee if you need the funds immediately.
PayPal has also introduced cryptocurrencies on its platform, but it still lacks the ability to trade stocks and other investments.
Strong Points
- high sending limit
- Setting up an account only requires an email address and phone number
- you can invest in crypto
Cons
- Fees are higher than other platforms for some transactions
- Instant cashout fee of up to 1.75%
Which one is best for you?
Many factors come into play when choosing between Cash App, Venmo, Zelle, and PayPal. The only way to narrow down your options is to decide what you’re really looking for in a payment app.
If you only want to send money between friends, Venmo or Zelle are great options. If you’re looking for a more robust financial services app, Cash App has a lot more to offer.
Cash App continues to build robust money apps for most financial needs. Bank? check. investment? check. tax? check. If you already use your phone to bank, transfer money, and check stocks, it might make sense to do it all in one place.
Check out Cash App here to get started >>