Between Paypal vs. Venmo vs. Apple Pay, which is the best option when sending money to family and friends? Well, PayPal is the most popular, Venmo is catching up with lower fees, and Apple Pay Cash is limited to iPhone users.
Read on to discover which one of the three is the best for sending money to family and friends.
PayPal – Send Money to Family and Friends
PayPal is not only the most popular but also the only one that allows you to send vast amounts of money to family and friends. It has an upper limit of $10,000, which is more than enough for most people who use it.
PayPal used to allow family and friends to send each other money free, but that has now changed. In fact, PayPal is now the most expensive way to send money, when you compare it to Venmo and Apple Pay.
It costs 2.9% +$0.30 if you send money from PayPal using a credit card or debit card as the funding method. However, it does not charge you any fees if the balance comes from your bank account or PayPal balance.
For transfers outside the US, PayPal charges roughly 2.9% +$0.30, irrespective of how you fund it. While PayPal is compatible with Android, iOS, and web browsers, international users may find it to be quite expensive for sending money to family and friends.
One feature that endeared PayPal to its users for so long, is that you can launch a claim in case of a fraudulent charge, and you will receive a refund. That makes it more suited to shopping online, than sending money to family and friends.
Venmo – Send Money with Minimal Fees
Venmo’s popularity is growing fast, thanks to its social networking feature. When you create a Venmo account, you get an option to add your friends to a list. That makes it easy to send them funds the next time you want to send them money.
Share Venmo Transfers
You also have an option to make public any Venmo transaction, which is great if you gift a friend on occasions such as birthdays. The cost of sending money on Venmo is free if you fund the transaction using a debit card or bank account.
If you use a credit card, Venmo will charge you a 2.9% fee. Moreover, you will need to pay 25 cents to transfer funds instantly to your debit card. Alternatively, you can wait for up to one business day, and pay zero fees.
The maximum amount you can send to family and friends using Venmo is $2,999.99 per transaction. Venmo is compatible with Android, iOS, and web browsers.
Apple Pay – Send Money to Family and Friends with iPhone
Apple Pay is a late entrant in the market, and it is limited to iOS users only. Furthermore, you cannot connect it to a bank account, which limits using your debit and credit cards.
Like PayPal, it has an upper limit of $10,000 per transaction, and you can fund your transaction using a credit or debit card.
Apple Pay Fees
Apple Pay charges a 3% fee if the funds come from your credit card, and zero fees if you use your debit card. Moreover, it takes up to three business days to withdraw funds from Apple Pay.
Final Word – PayPal vs. Venmo vs. Apple Pay
Apple Pay is still catching up, and we hope it will soon support adding bank accounts and become compatible with other platforms.
For US users, PayPal and Venmo offer the best deals for sending money to family and friends. However, Venmo’s withdrawal period is shorter and its overall fees are lower.
That makes it the best for sending money to family and friends.