Cash is old news. The next time your friend or family member covers you with lunch, a movie ticket, or even a sleepover in town, it’s easier and nicer to get your money back.
one that is not associated with awkward dollar bills.
All you need is a smartphone.
Between the well-established Venmo and the recently updated Google Wallet, there are two easy ways to instantly transfer money between users. But which one should you use: the tried and true one or the new newbie? Here’s what we think.
Everyone is already using Venmo
Venmo is so easy to use that you can get up and running in just a few minutes. Once you’ve created an account and signed in to the app, all you need to do is connect your bank account, debit, or credit card. Venmo uses bank-grade security and encryption, so there is no need to worry about that.
If you have a source of money, you can make payments to anyone as long as you have a Venmo username (if you don’t, you can always search for the recipient’s name in the app). Payments may have notes attached to explain what the payment is for, such as dinner or rent. Translations take only a few seconds.
The recipient must have a Venmo account.
Please be aware that bank and debit payments are free, but there is a 3% surcharge on credit cards. The money received is stored in your Venmo account and can be used for further Venmo payments in the future, or you can withdraw it to your connected bank account within one business day.
Finally, you should know that Venmo is a semi-social network. You can add users as friends, which is handy for those with whom you frequently exchange money, but Venmo also has a “payment feed” that shows the activity of money in your network of friends. (Fortunately, payments can be made privately if needed.)
Pros
- Supports bank accounts, debit, and credit cards.
- Descriptive notes may be attached to payments.
- Withdrawal of funds to a bank account within one business day.
- Semi-social network with a list of friends and an activity feed.
Cons
- 3% commission for credit card transactions.
- The recipient must have a Venmo account to receive.
But Google Wallet Is Sleeker
Google Wallet is now a new entity. It used to be a convoluted mess, but Google has done a great job of turning it into something that everyone can benefit from. Basically, it’s like a more simplified version of Venmo with the same utility.
A wallet is a separate account with its own balance. You can connect a bank account or debit card to deposit money, but unlike Venmo, there are no credit cards. The good news is that you can send money to anyone, even if they don’t use a Wallet. All you need is the recipient’s email address.
What’s really cool is that Google provides free “wallet cards”, which are basically debit cards that use your wallet balance instead of bank balances. You can order your wallet card directly from the app, and yes, it’s really free.
There is no fee, but there is a generous limitation: when sending, receiving or recharging balance, each transaction is limited to $ 10,000, and in any given five-day period there is a cap of $ 50,000.
Be careful not to confuse Google Wallet with Android Pay, which is a system for making payments in stores, whether using NFC terminals or just check online. Google Wallet, on the other hand, is only for individual payments.
Pros
- Supports bank accounts and debit cards.
- Makes payments to email addresses (no Google Wallet account required).
- 24/7 fraud monitoring covering 100% verified unauthorized transactions.
- The wallet card is provided by Google for free.
Cons
- No credit card support.
- The transaction limit is USD 10,000 (USD 50,000 for any five-day period).
And the winner …
This is a tricky challenge, and the answer really depends on where you are now and what tool you are already using, if any.
For those who are not yet using any of these apps, we recommend Google Wallet simply because it can send payments to anyone, even those without a Google Wallet account. This is a tricky feature and the wallet card provided is a big bonus.
For those who are already an avid Venmo user with many friends who are also already on Venmo, we recommend that you stick with Venmo. Functionally, it works the same as Google Wallet, and there is no particular reason to switch. (Unless you really want a wallet card, I suppose).
If none of these worries you, you can try the third option at Square Cash. It’s closer to Venmo than Google Wallet, and certainly the least popular of the three, but it’s definitely a viable alternative.
They are all so easy to use that you probably won’t care about potential innovations like selfie-based payments.
