facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause
Which Payment App is Right For You? Thumbnail

Which Payment App is Right For You?

From online shopping to splitting the bill at dinner, payment apps provide convenience and security when it comes to spending your money. Are you curious about which option might be right for you? Here's a list of some of the most popular apps including fees and best uses for each.

PayPal

PayPal has been around since 1998 and was acquired by eBay in 2002. In addition to being the primary payment method for eBay, it can be used to make virtual payments elsewhere. There is no fee to open an account and users are typically not charged a fee for making purchases or when sending money to friends or family.

Fees can be charged if sending money from a credit card or converting currency. There may also be a 2.9% processing fee for qualifying transactions. Users can send up to $60,000 through PayPal, however, they may be limited to sending $10,000 per single transaction.

Venmo

Venmo is owned by PayPal, however, there are some key differences between the two apps. Venmo is designed specifically for sending money between friends and family. Unlike PayPal, there is a social aspect to Venmo as users are encouraged to include messages and emojis in transactions that can be seen by other users in your network.

There is no cost to send money using your bank account, and users can pay for business transactions using this app. There is a 3% processing fee for qualifying transactions with a $299.99 spending limit for unverified users and less than $4,999.99 a week for verified users. 

Zelle

Zelle is a mobile app with a simple interface. As a user, you can send same-day money transfers to anyone who has an account with a participating bank including Chase, Bank of America, Citi, Wells Fargo, Ally and Capital One.

Zelle has an app available for download on your phone, however, you can send money without the app as well. It is free for the user, however, banks are charged between $0.50 and $0.75 for each transaction.


Apple Cash

If you have an iPhone, you can easily send or receive funds through Apple Cash. To use it, simply set up Apply Pay via Settings on your phone and then use it as your payment option at participating retailers (approximately 65% of all merchants). You can also use it to send money to family and friends by opening the messaging app, selecting a contact and tapping the Apple Pay icon at the bottom of your screen.


There is a 1% fee deducted from each transfer, and you can send or receive a minimum of one dollar with a maximum of $10,000 in a seven-day period.

Cash App

Cash App, formerly known as Square, is now the number one finance app in the App store. Upon signing up, you are given a screen name called a $Cashtag. You can easily find others using their phone number or email address. Using a linked bank account, Cash App allows you to send and request money virtually. 

Cash App is free to set up, but if you pay with a credit card, each transaction will incur a 3% transaction fee. It generally takes one to three business days to transfer funds to your bank account. If you prefer to receive your money instantly, expect a 1.5% transaction fee. You can send up to $250 within a 7-day period and $1,000 within a 30-day period.

Google Pay

Formerly known as Google Wallet, Google Pay integrates with the G Suite account you may already have. It’s designed to work well with other Google products and services, making it easy and intuitive to use for those who are already accustomed to Google’s offerings.

There are currently no fees to sign up to use Google Pay. Users are limited to sending up to $10,000 in a single transaction.

Facebook Pay

Through Facebook Messenger, users can send money to anyone with an account, as long as their debit card has been connected. Once payment has been accepted, it will appear in your bank account within five business days. 

Facebook Pay has no fees and does not store money in an online account. There is no minimum amount that you can send or receive and the maximum amount is $9,999.