One of the major challenges a freelancer encounters when handling gigs is the mode of payment. Most of these employers work globally, and regular bank transfers aren’t ideal. Aside from worrying about extra charges, there’s also the problem with the time taken for the cash to be delivered. One of the ways of bridging this gap is through the use of online payment platforms that are available worldwide.
The most popular online payment platform is PayPal. With PayPal, you can send and receive payments from on over 200 countries. While that’s the case, platforms like Payoneer, Alipay, Skrill, Stripe, and Worldpay, amongst others also do a pretty good job of breaching the gap necessary to make international transactions.
Is Venmo the same as PayPal
Venmo is a subsidiary of PayPal. The platform was created in 2009 and was bought by the owners of PayPal in 2012. This platform aimed to encourage transactions between friends and loved ones.
Venmo and Paypal are the two top digital transaction apps, and the choice of which one you use will be determined by the transaction you wish to perform. Personal transactions such as the exchange of money between friends and family are well suitable for the Venmo app, while purchases from online stores and other big businesses are more suited to PayPal.
Differences and Similarities between Venmo and PayPal
Differences
1. Payment fees
For transactions between users, no fee is attached. However, sending money through your linked debit card attracts a fee of 2.9%, and on Paypal, additional costs are based on that transaction’s currency. Also, PayPal charges for payments on credit cards Venmo does not collect charges for credit card transactions.
2. International transaction
Venmo is strictly based in the US, but PayPal is available in over 200 countries and can conduct transactions using 25 different currencies. Sending money internationally attracts a charge of 5% if the payment is charged from your PayPal account and an additional minimum fee of $1 if payment is made from your debit or credit card.
3. Transaction limit
Venmo has a total weekly limit of 6,999.99 dollars in the combination of Venmo balance, debit card, and credit card. On the other hand, PayPal has no limit on any specified time frame, but you can only send or receive 10,000 to 60,000 dollars at a time, depending on your account level.
4. Where it can be used
Venmo is best suited for use among friends though a few businesses are also authorized to be on this platform and use it as a payment method. PayPal is a widely operated platform, and most businesses use this as a payment method PayPal can be used for transactions among friends, for online shopping, and can also be used in small retail businesses.
Similarities
1. Mode of payment
In both platforms, payment can be made using credit and debit cards linked with your PayPal or Venmo account, and payment can be made from your Venmo or PayPal balance.
2. Registration cost
Creating an account on both platforms is totally free all you have to do is download the app and follow the prompts to create an account with the platform.
3. Where they are found
Venmo and Paypal can be used on Androids, iOS, and mobile web browsers. You can find both apps by searching for them on the Play store for Android phones and the App store for iPhones.
How the Venmo app works
Once you’ve completed your registration process on the Venmo app, you can immediately begin to perform transactions. You can request for or send money to fellow Venmo users at no cost. You can add money to your Venmo wallet from your debit card.
If you make payments that exceed your available balance, the extra amount will be deducted from the cards linked to your account. You can transfer money from your Venmo wallet to any bank account in the US. If you want the money received on that same day, you can use the instant transfer method, which will attract a fee of 1.75% otherwise, the transaction will be concluded within 3-5 working days.
