With the coexistence of smart devices and the internet, the digital market has grown beneficial and affluent, increasing cashless payment. In 1998 when PayPal came into existence revolutionized the arena of commerce and transactions, making them a step ahead in the digital world. Often a common question arises, does PayPal own Venmo? In 2009, Venmo was designed to be a peer-to-peer transaction app service for splitting bills for movies, dine outs, rent, tickets, and so on. The company Braintree bought it, and later PayPal took it over in an $800 million deal.
DOES PAYPAL OWN VENMO- HOW?
PayPal Company is the institution that owns Venmo.
In 2009, College room-mate Andre Kortina and Magdon-Ismail designed and built an application to transfer money among people quickly. In the journey to help a friend set up his store, they managed to develop and put Venmo up for a financing round for $1.2 million. Two years later, in 2010, Braintree bought it, which was later acquired by PayPal.
WHICH ONE TO CHOOSE AS YOUR DIGITAL WALLET?
PayPal or Venmo is a common point of doubt. They are both app-based electronic services that enable smooth transactions from individual-to-individual and business-to-individual. The quality of service is neither better than the other as Venmo is a subsidiary of PayPal company. Similarly, either could be superior to the other depending on the need for payment.
The difference between Venmo and PayPal are as followed-
- Creating accounts on Venmo or PayPal is free-of-cost. They present on platforms like iOS, Android (their app stores offer the apps for free), and the web. Creating an account on PayPal requires an email, while one can put their mobile numbers and create a Venmo account.
- There is a minimal cost for transferring money on these online transaction portals. PayPal charges 2.9% of each transaction plus $0.3 on purchases. Venmo charges a fee of 3% on receiving or payment made by credit card. The charges don’t apply when the user purchases their bank savings account or debit card.
- The online payment service providers also offer services like transferring money among connected bank accounts; however, this procedure is a little time-consuming. It takes one business day to transfer money on Venmo and one or two business days for PayPal. The instant transfer service is also available, which will charge a 1% fee for $10 (maximum amount).
- As PayPal has a more flexible model of payment services, it is encouraged by businesses. It has proved itself trust-worthy for merchants, as it has been a presence in the e-market since 1998. PayPal also served as the payment portal for a prominent multinational e-commerce brand- eBay. PayPal is convenient for small businesses, individuals, and salaried workers.
- What is Venmo? It is an interface of a digital wallet and social media feed. The app has a newsfeed where people comment on every transaction then posted. Anyone can browse here and get information about the previous payments and service. People use Venmo as social media, adding stories, and jokes. This app has become extremely popular among millennials because it has made tasks like splitting bills, rent, and tickets easy and quick. Only a few businesses accept payment through Venmo, only if the user uses their debit or Mastercard.
- Venmo has a transfer limit of $4999.99, whereas PayPal has a transfer limit of up to $10,000. This criterion has made merchants choose PayPal for e-trading.
- PayPal is also a global electronic payment app-based service that functions in 200 countries, in 25+ currencies. On the other hand, Venmo works only within the boundaries of the United States.
CAN MONEY BE TRANSFERRED FROM PAYPAL TO VENMO?
PayPal owns Venmo, which is a guarantee its services offered are similar. The app-based transaction accounts are attached to that of the user. The payments are either made directly from there or via credit, debit, or Mastercard.
If an individual wishes to send money from PayPal to Venmo, then directly it is not possible. Transfer of funds among the apps is possible only through the mutual bank account. The user can move money from Venmo to the bank account and use it from the PayPal account. Another option to do this if the user gets a PayPal Debit Mastercard and puts it on Venmo and utilizes that to make purchases.
In case if someone with a PayPal account can send money to the Venmo account of another individual. Here, the answer is negative. Even though Venmo is a part of the PayPal Company, funds can’t be moved among the apps directly or indirectly.
If we compare in the arena of Venmo versus PayPal, we must consider all the points mentioned. Starting from, Venmo is owned by the PayPal Company, which means none of the quality of service is better than each other. In the age of the cashless transaction trend, these apps have made their service a necessity. Venmo is convenient to use among peers, family members, and people the user knows and trusts. Such as no more excuses of not having cash while sharing the rent or splitting bills. Instead of throwing five different cards on the table, one can pay the bill and then choose to split just by a touch beside the contacts he/she wishes to split the bill. While PayPal is convenient for commercial needs, to make purchases or sell something. PayPal offers services targeting ease in businesses, trading, funding, purchasing, and selling, and so on.
Venmo or PayPal depends on your state of affairs as both are easy-to-use and secured.