Buzz
Apple Pay Cash, touted as a potential Venmo competitor, enables users to send and receive money through iMessage on an iPhone. It sounds like a fantastic option, but with so many peer-to-peer services available, is it really necessary to sign up?
Most of these services offer similar baseline security features (for further details, check this out—though keep in mind that Venmo and Square have recently introduced two-factor authentication). Here's a breakdown of the most popular payment platforms for comparison.
Apple Pay Cash
Distinct from Apple Pay, which is used for in-store purchases, Apple Pay Cash is a peer-to-peer payment system on your iPhone, functioning much like a bank account on your device (similar to how Venmo stores funds within its app).
Advantages:
Simple to use, especially if everyone has an iPhone.
Offers more privacy compared to Venmo (this might not matter to everyone, but it's a plus for me).
You can use your Apple Pay Cash card for purchases in the App Store or at retailers that accept Apple Pay.
Requires you to enable two-factor authentication on your iCloud account.
No fees for sending, requesting, or receiving money.
Drawbacks:
Both the sender and recipient must have an iPhone, iPad, or Apple Watch with iOS 11.2 or watchOS 4.2 installed.
A 3% fee is charged when sending money from a credit card to your Apple Pay Cash card.
A $10 minimum and a $3,000 maximum apply when adding funds to your Apple Pay Cash card.
Bank transfers can take one to three days to complete.
Controversial:
For every payment made with Apple Pay Cash, you’ll need to authenticate using Face ID on the iPhone X or Touch ID on other iPhone/iPad models.
Google Wallet
Google Wallet is a free peer-to-peer payment platform that allows for quick transfers.
Advantages:
You can send money through the app, Gmail, the web, or even text messages.
All you need is the recipient's email address or phone number to send funds.
You can choose to send money directly into your bank account by setting it as the default option.
Your Google Wallet card allows you to spend funds instantly.
It supports adding multiple bank accounts.
There are no fees for sending or receiving money.
You can cancel payments if the recipient hasn't claimed the money yet.
Disadvantages:
Money transfers cannot be made to recipients outside the U.S. (or the U.K.).
Venmo
A popular peer-to-peer payment service that’s simple to use and widely favored by millennials.
Advantages:
Anyone can use Venmo once they create an account.
Venmo is available as a payment option on websites and apps via PayPal (which owns Venmo).
You can send money via iMessage if you have at least iOS10 (the payments are transferred to the recipient’s Venmo account).
Sending, requesting, or receiving money comes with no fees.
You can make it a social experience by checking out your friends’ transactions.
Drawbacks:
Your starting transaction limit is $299.99 per week. If you verify your identity, the limit increases to $2,999.99 within any seven-day period.
You cannot cancel payments sent to incorrect recipients.
Bank transfers can take one to three days to process.
It’s also possible to check out your friends’ payments, adding a social aspect to the app.
Zelle
Zelle is like Venmo for your parents. This peer-to-peer payment system connects with major banks such as Bank of America, Chase, Citi, and Wells Fargo. Its major selling point is that transactions can be completed in minutes, provided all the participants’ banks support the service.
Advantages:
Zelle is quicker than services like Venmo—the main goal of Zelle is that the money is instantly available in your bank account, even when sent from a different bank.
If your bank partners with Zelle, you can directly use your bank’s app to transfer funds.
All you need to send money is the recipient’s email address or phone number.
No fees for sending, requesting, or receiving money.
Disadvantages:
You can only cancel a payment if the recipient has not enrolled with Zelle, as payments are immediately transferred to their bank account once enrolled.
Square Cash
Square Cash, also known as the Cash app, is another peer-to-peer payment service.
Advantages:
Anyone can sign up and it’s fairly straightforward to use.
You’ll receive a debit card linked to your account, which can be used for in-person purchases.
It’s also suitable for handling business transactions.
No fees for sending, requesting, or receiving money if you're using a personal account.
You can activate “Auto Cash Outs,” which automatically transfers received funds to your linked bank account.
Disadvantages:
A 1% fee is charged for each instant deposit, based on the deposit amount.
There is a 3% fee when making payments via credit card.
PayPal
PayPal is the original peer-to-peer payment system, although it’s now mostly used by small businesses or for making online purchases, like on eBay.
Advantages:
Quick and simple to set up and use.
Many retailers offer deals or discounts to PayPal users.
There are no fees for sending money from your PayPal balance or linked bank account.
Can be used to send and receive money internationally.
No weekly limits on transactions.
Disadvantages:
Sending money via debit or credit card incurs a fee of 2.9% of the transaction amount, plus an additional $0.30.
You can receive funds from your PayPal account as a check, with a $1.50 processing fee.
If you use PayPal for payments at retailers, you forfeit the opportunity to earn credit card points or rewards.
