If you are like me and do not like the idea of carrying cash, you must always use Venmo or Zelle. Even though both these digital wallets are great, we need to compare the two to find out which is better for you. So, in this article, we will compare Venmo vs Zelle to find out which one is safer and better.
What is Venmo and Zelle?
Both Venmo and Zello are digital wallets. You can pay at any store that accepts these digital wallers or nonchalantly send money to your contacts.
Venmo allows you to keep money in your wallet, the bank account, or a credit/debit card that can be linked to your wallet. The developers at Venmo have made the process quite seamless, where if you are paying someone and you don’t have the required funds in your wallet, the remaining money will debited from your bank account.
On the other hand, Zelle doesn’t allow you to keep money in the wallet; instead, you ought to link your bank account to make the purchase. However, both wallets have the same purpose: you can use this service to send money to friends, family, or anyone who provides services to you, such as nurses, plumbers, or gym trainers. Zelle allows you to split bills, pitch in for gifts, or pay your share of expenses pretty easily.
Venmo vs Zelle compared
We are going to compare Venmo and Zelle based on the following parameters:
- Safety of the user
- Cost of payment
- User Interface
Let us talk about them in detail.
1] Safety of the user
First of all, let us know something that is of utmost concern to us: security. Both digital wallets add a layer of protection to your transaction details by encrypting them.
One of the disadvantages of Venmo is that it doesn’t offer buyer/seller protection. This is the reason why the user agreement advises against sending money to individuals who can’t be trusted. Venmo allows you to secure their mobile app using a combination of PIN and password.
If your device is lost, you can log in to your Venmo account from any browser and remove your device from the approved list. This will block the phone from accessing your account.
Now, let us move on to Zelle. It is a bit ironic, as it is a digital wallet that doesn’t store your money. However, it creates a bridge between your bank and the receiver. So, your transactions are secured by your bank.
Both digital wallets are secure, but Zelle has a slight advantage because you are not storing any money in your wallet.
2] Cost of payment
Even though these companies are trying to offer free transactions, you might have to pay a small fee for some transactions.
In Venmo, you can send money to your bank account, debit card, or Venmo balance without any cost. Not only that, receiving and withdrawing money is also free of cost. However, if you want to send someone money using your credit card, they will take 3% of your cut. If you want to deposit a check, there will be a fee ranging from 1% to 5%. The minimum fee is $5. However, this is still a convenient way to get paid without waiting in line at a bank. For businesses, there is a fee of 1.9% plus $0.10 for receiving transactions. This fee only applies to business accounts or when the sender specifies that the payment is for goods or services.
Since Zelle does not store your money, there are no fees. You can pretty easily send or receive money via the Zelle app, and they won’t charge you anything. However, your bank will charge you money depending on their rate.
Read: How does Venmo work?
3] User Interface
User Interface is something we notice as soon as we launch the app. However, since both these payment wallets are pretty well established, they don’t have a bad UI. In Venmo, you must set up your wallet and send funds, whereas Zelle just asks you to add your account. You can go to zellepay.com to know if your bank currently participates.
Let us have your input about these two services.
Is Venmo the safest?
Venmo is a safe option, but I wouldn’t go as far as to say it is safest, not because there is something wrong with Venmo, but because Zelle relies on the security provided by your bank. However, Venmo encrypts your transaction details making it one of the safest payment options.
Read: How to block GPay, PayTM, PhonePe when a phone is lost
Is Venmo riskier than PayPal?
Venmo ensures the safety of your account information through encryption. Additionally, you can set up multi-factor authentication or a PIN for your account by working with Venmo. PayPal offers comparable security measures as Venmo, but it also provides more advanced security features tailored for businesses.
Also Read: How to delete Cash app history from your account.
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