Venmo has long been one of the favorite apps for quick peer-to-peer payments. Whether splitting a bill or sending money to family, it’s been the go-to option for many. However, Venmo is not without its drawbacks. If you’re looking for other options or wondering why people have shifted away from Venmo, there are plenty of other apps to consider.
In this guide, we’ll explore some of the best apps like Venmo and answer key questions like “is there a better app than Venmo?” and “why have people stopped using Venmo?” We’ll also dive into the negatives of Venmo and why banks are hesitant to use the app.
1. Cash App
Cash App is one of the most popular Venmo alternatives and offers more features beyond just sending and receiving money. While it started as a peer-to-peer payment service similar to Venmo, Cash App now offers users the ability to invest in stocks and Bitcoin.
Why it’s better than Venmo:
Cash App allows users to send money instantly to other users, just like Venmo, but with the added bonus of investing options. It also has fewer restrictions when it comes to business payments, making it more versatile for freelancers.
Negatives:
While Cash App has a broader range of features, it lacks the social feed that some users enjoy with Venmo. Additionally, transferring funds from Cash App to your bank account may incur a fee if you opt for instant transfers.
2. Zelle
Zelle is another solid alternative to Venmo. It’s integrated directly with many banks, allowing for quick transfers between accounts. Zelle’s major advantage is its speed, as transactions typically occur within minutes.
Why it’s better than Venmo:
For those who want a more streamlined process, Zelle eliminates the need for a separate app. Since it’s connected to your bank, it’s as simple as logging in and sending money.
Negatives:
Zelle is only available through participating banks, meaning it doesn’t have the same broad accessibility as Venmo. Also, Zelle doesn’t offer the same social features, and it lacks options for payments to businesses or casual sellers.
3. PayPal
PayPal, the parent company of Venmo, offers a more robust and secure platform for payments, particularly for international transfers. While Venmo is limited to U.S. users, PayPal has a global reach, making it a better choice for sending money internationally.
Why it’s better than Venmo:
PayPal provides more security features, including buyer protection and the ability to dispute charges. If you frequently send money abroad, PayPal is the better choice.
Negatives:
PayPal’s fees can be higher than Venmo’s, especially for international transfers and currency conversions. For U.S.-based, casual transactions, Venmo may still be more cost-effective.
4. Skrill
Skrill is a great option for those needing an international payment service. It’s popular in online marketplaces and for digital purchases, but it’s also useful for sending money to friends and family. If you are an avid online gamer (online skill games or otherwise) Skrill is an easy and safe way to withdraw your earnings from various platforms.
Why it’s better than Venmo:
Skrill is available in over 120 countries and supports multiple currencies, making it an excellent option for international users. Its fees for foreign transfers are often lower than PayPal’s.
Negatives:
The platform’s interface is not as user-friendly as Venmo’s, and while it’s great for international payments, U.S. users may find Skrill to be less intuitive for everyday transactions..
Why Have People Stopped Using Venmo?
So why have people stopped using Venmo as their primary money transfer service? Well, there are several reasons why users might look for apps like Venmo. One of the main complaints about the platform is its lack of privacy, with its default settings making all transactions visible on a public feed. Although this feature can be turned off, many users have found it annoying and intrusive.
Additionally, Venmo’s customer service has been criticized for being slow and unhelpful when resolving disputes. And for those who need international transfers, Venmo simply doesn’t support that need, driving users toward apps like PayPal or Skrill.
Are There Negatives To Apps Like Venmo?
While Venmo is convenient, it’s not without its flaws:
- Privacy issues: Many users are uncomfortable with Venmo’s default public transaction history.
- Limited international availability: Venmo only works in the U.S., making it impractical for global users.
- Fees: While sending money between friends is free, instant transfers to your bank account come with a 1.75% fee. Some businesses are also charged for using Venmo, which can make it less appealing for freelancers or small business owners.
Why Don’t Banks Like Apps Like Venmo?
Banks are often wary of Venmo for several reasons. One of the main concerns is that Venmo, like other peer-to-peer payment services, can make it easier for fraudsters to conduct scams. Users who send money to the wrong person, or get scammed into sending money, often have little recourse in getting their funds back.
Furthermore, banks view Venmo and other similar apps as competition. Since Venmo handles transactions directly, it reduces the need for traditional banking services. This has led many banks to promote their own alternatives, such as Zelle, which is directly integrated into their systems. Not to mention that many of these money-transfer apps have moved to become a one-stop banking solution for users who may not have such great luck with other brick-and-mortar banks. Apps like Cash App, Skrill and Paypal all offer account numbers, routing numbers and debit cards which allow users to hold money in their accounts and make purchases like they would with a regular bank card.
Are There Better Apps Than Venmo?
The answer to this depends on what you’re looking for. If you need to send money internationally, PayPal or Skrill are better options. If you want something more private and secure, Zelle may be preferable. For those who like to invest, Cash App provides features that Venmo doesn’t.
Ultimately, Venmo remains one of the most popular peer-to-peer payment services, but there are plenty of apps like Venmo that can meet different needs. At the end of the day, what app best suits your needs is largely a matter of personal preference.
Conclusion
Venmo is undoubtedly a convenient and popular app, but it’s not perfect. Whether it’s privacy concerns, limited international functionality, or the rise of competitors, many users are exploring apps like Venmo for sending and receiving money. Alternatives like Cash App, Zelle, and PayPal each offer unique features that may make them better suited to your needs. For moms managing money across multiple accounts or even internationally, these alternatives can provide greater flexibility and security.
What peer-to-peer app is your go-to of choice? Let us know in the comments.
