Zelle vs Venmo: Which Is Better?

Zelle vs Venmo: Which one should you choose?

With Venmo and Zelle, you can send money to friends and family easily. Using these smartphone applications, users may transfer funds and request funds from others. The money is then sent to the recipient's bank account or stored in the app's wallet.

Zelle and Venmo are two of the most popular apps available to transfer money between friends and family, as well as make purchases at places like gas stations, grocery stores, restaurants, and fast food joints with just a few taps on your phone. Venmo also allows business owners to receive payments from their customers.

Both apps are free to download, but there are differences in what you can do with each one that may be important to you and your financial needs. This comparison will help you decide which one will better serve your needs now and in the future.

What do Zelle and Venmo have in common?

What Zelle and Venmo have in common is that there are both peer-2-peer apps that can be accessed without any personal information. They both work using the recipient’s phone number or email address. Another thing that these two money transfer apps have in common is that there are currently only available for US residents.

Feature of Zelle and Venmo

With both of these payment methods, there are a lot of features backed in their mobile apps. Zelle and Venmo have taken the US by storm and have risen to the top of peer-2-peer finance apps over the last couple of years. Let’s take a look at some of the features provided by each of these payment methods. 

Features of Zelle 

• Real-Time Payment Updates. 
• Funds Availability.
• An intuitive mobile app. 
• No money transfer fee.
• Quick Transfers.
• Secure money transfers (Authentication and fraud monitoring).

Features of Venmo 

• One-touch mobile payments for all kinds of people, including those who don’t have a bank account.
• Transfer money with Venmo Balance or your debit card to anyone you choose at no charge. 
• Quick and easy checkout process to buy everything from your everyday purchases to concert tickets and more. 
• Pay friends by simply using their name; no need to ask for bank account numbers or sort through various accounts. 
• Buy prepaid cards at thousands of locations nationwide in minutes so you can shop online, eat out, get gas, go shopping or get whatever you want instantly—even if you don’t have enough cash on hand.
• Mobile apps

How Does Zelle Work?

Ever been out to dinner with a large group of friends or your family. Having to make the waiter break down everyone’s check, can be a very long process. So, one person plans to foot the bill and you all pay them back. But how? How can all the people with different bank accounts all send money quickly and without the need for extra information? 

This is where Zelle comes in. With Zelle not only will you be able to transfer funds from your bank account in a matter of minutes but also receive funds just as quickly. Most of the banks in the US participate in Zelle. To find out if your bank or credit union offers Zelle, go to the get started page on zellpay.com. If your bank provides it, go to their website or mobile app and enroll your email or US mobile number. Once enrolled, you may send money from your banking app to your cell phone. if you happen to use a bank that doesn’t do not fret. Zelle will still allow sending money via their mobile app but they can be only in small increments. 

To send money with Zelle you just have to follow these quick three steps: 

• Step 1: Check if Zelle is available in your mobile banking app provided by your bank. 
• Step 2: Once you find out that Zelle is available. Pick out a trusted person to send funds be it a friend, a family member, or a coworker. You can add them via their phone number or email address.
• Step 3: Select the amount you would like to send. 
• Step 4: Send the fund.

Zelle: Pros and Cons

 

 

When To Use Zelle

You should definitely try using Zelle if you have to get someone or send them money very quickly. Any more than that and all of the flaws of the money transfer service start to reveal. 

Is There a Fee To Use Zelle?

It is important to know that Zelle does not cost users any money; however, if you are sending money through your bank account then you may be charged for making an ACH transaction. This may be different depending on your bank so it’s important to check with them.

Is Zelle Safe To Use?

A key aspect of Zelle is its financial backing, which is backed by many well-known institutions. Be sure that you have the correct phone number or email address if using Zelle. In most cases, you can’t cancel a transfer with Zeller if you send money to the wrong person.
Zelle money transfer speed
In contrast to other P2P payment systems like PayPal, which can take a couple of days to transfer funds, Zelle transfers funds within minutes.

How Does Venmo Work?

They are the two words that all millennials seem to be using these days. Venmo me! The peer-to-peer payment app, owned by PayPal has become a household name. The finance app also operates as a social network and lets you comment on payments seeing who and what your friends are spending on. It all happens pretty seamlessly from your phone.

So how does Venmo actually work? You link your bank account,  type in someone's phone number and the dollar amount, and send it but it's not all that easy. Think of it like a duck going across the water. It looks very smooth to the consumer but below are their feet moving very quickly.

Venmo: Pros and Cons

 

When To Use Venmo

Alternatively, Venmo is a more versatile choice than Zelle. Venmo’s more broad capabilities, as well as the addition of debit and credit cards, give it the edge over Zelle. Nevertheless, some fees may be imposed because of its flexibility.

Is There a Fee To Use Venmo?

Generally, Venmo charges you a 3 percent fee, but if you use a Venmo balance, the firm will forgo that fee. In the case of credit card transactions, consumers are not exempt from the 3% charge.

Is Venmo Safe To Use?

Venmo has been relatively safe for the realities of your day-to-day finances, regardless of whether it is used for online or in-person transactions. Several security measures are in place to protect your account information such as data encryption technology.

Venmo money transfer speed

Transferring money from Venmo to a bank account typically takes about 30 minutes for eligible U.S. bank accounts and cards.

Can Zelle Send Money to Venmo or vice versa?

It is not possible to send a payment in the form of a Venmo payment to a Zelle recipient. Both Zelle and Venmo have a peer-to-peer app designed to transfer funds between bank accounts. Since Venmo is not a bank account, you can’t send funds to a Venmo recipient from Zelle either.

Alternatives to Venmo and Zelle 

Conclusion

While both are simple and convenient methods for sending money to friends, family, coworkers, or even businesses, it's important to note that they aren't identical. While similar, there are some key differences that may determine which app works best for you. Zelle users can send money directly from their bank account to a recipient's bank account with no fees.