PayPal vs Venmo
Updated November 2026 · AppBreakup editorial
PayPal
Online payment account and app for paying shops, sending money and buying now, paying later.
Venmo
PayPal-owned US app for splitting bills and paying friends and businesses.
The short answer
PayPal owns Venmo, but they do different jobs. Venmo is a US-only app for splitting bills and paying friends, free from a balance, bank or debit card. PayPal is a broader digital wallet for checking out at online stores, with Purchase Protection, Pay in 4 and availability in many countries. Pick Venmo for paying friends in the US; pick PayPal for online shopping, selling or anything outside the US.
PayPal or Venmo: our take
Venmo and PayPal come from the same company and can even send money to each other, since Venmo users can pay US PayPal accounts. The split is mostly about purpose and geography. Venmo is a US-only peer-to-peer app for splitting rent, dinners and trips, with an optional social feed of payments between friends. PayPal is a digital wallet that links your cards and bank accounts so you can check out on websites and in apps without typing card details, and it works in many countries, though features vary a lot by region.
For everyday payments between friends, Venmo is simple: sending from your balance, bank or debit card is free, there's no monthly fee, and paying with a credit card adds a 3% fee. PayPal is free to open and free for buyers, but fees apply to some transfers, currency conversion and receiving payments for sales. In the US its checkout fee for merchants is 3.49% plus a fixed fee, card payments cost 2.99% plus a fixed fee, the fixed fee is $0.49 per US dollar transaction, and international commercial payments carry an extra 1.50%.
PayPal's strengths are acceptance at a very large number of online stores, Purchase Protection on eligible purchases, and buy-now-pay-later options (Pay in 4 and Pay Monthly in the US). Venmo has caught up on some of this, with checkout at many online stores, purchase protection for eligible payments, a debit card, a credit card, teen accounts and business profiles, but its reach stops at the US border. Venmo's feed is public by default, so privacy settings are worth changing.
US friend groups who mainly settle up with each other will find Venmo the more natural app. People who shop online often, sell goods, need buyer protection or send money internationally should use PayPal. Many Americans use both: Venmo for friends, PayPal at checkout.
Which should you pick?
Choose PayPal if…
- People who pay online often or send money to friends across iPhone and Android
- Accepted at a very large number of online stores
- Works on any phone and in the browser
Choose Venmo if…
- US friends and roommates splitting bills and paying each other back
- Free to send money from balance, bank or debit card
- Can pay US PayPal accounts as well as Venmo users
About each app
What is PayPal?
PayPal is a digital wallet that links your cards and bank accounts to one account, so you can check out on websites and in apps without typing card details. The app also handles sending and requesting money between people, splitting costs, paying in instalments with Pay in 4 or Pay Monthly in eligible regions, a PayPal debit card, savings and buying cryptocurrency in some countries. Eligible purchases are covered by Purchase Protection, and logins can use biometrics and passkeys. It works on iPhone, Android and the web and is accepted by a huge number of online stores. Opening an account and using the app are free for buyers; fees apply to some transfers, currency conversion and receiving payments for sales. Unlike Apple, Google or Samsung Wallet, it isn't mainly a tap-to-pay phone wallet, and feature availability varies a lot by country.
What is Venmo?
Venmo is a US peer-to-peer payment app owned by PayPal. People use it to split rent, dinners and trips, with an optional social feed showing payments between friends. Sending money from your Venmo balance, a bank account or a debit card is free, while paying with a credit card adds a fee, and instant transfers to your bank cost extra. Beyond paying friends, Venmo has a debit card, a credit card, direct deposit, teen accounts, crypto buying, purchase protection for eligible payments, and checkout at online and in-app stores that accept it. Small businesses can create business profiles to accept payments. It can send money to US PayPal accounts too. The app is available on iOS and Android with a limited website, and only for people in the United States.
Side by side
| Attribute | PayPal | Venmo |
|---|---|---|
| Pricing | Free plan + paid | Free |
| Open source | No | No |
| Self-hostable | No | No |
| Platforms | Web, iOS, Android | iOS, Android, Web |
| Best for | People who pay online often or send money to friends across iPhone and Android | US friends and roommates splitting bills and paying each other back |
| Status | Active | Active |
PayPal vs Venmo pricing
Venmo: free
We couldn't verify Venmo's plan details on its own site yet, so we don't list them.
Venmo pricing pagePlatforms
| Platform | PayPal | Venmo |
|---|---|---|
| Web | ||
| iOS | ||
| Android |
PayPal facts
8 of 8 verified- Buyer protection
- Purchase Protection
- Checked Nov 8, 2026paypal.com(opens source in a new tab)
- “And Purchase Protection covers your eligible purchases.”
- Account cost
- Free to open
- Checked Nov 8, 2026paypal.com(opens source in a new tab)
- “It’s free to open an account with PayPal or download the PayPal app.”
- Platforms
- iOS, Android
- Checked Nov 8, 2026paypal.com(opens source in a new tab)
- “You can download the PayPal app from the iOS App Store or Android Play Store.”
- Buy now, pay later
- Pay in 4, Pay Monthly (US)
- Checked Nov 8, 2026paypal.com(opens source in a new tab)
- “Explore Offers Pay when and where you want Pay now, Pay in 4 6 , or Pay Monthly”
- PayPal Checkout fee
- 3.49% + fixed fee (US)
- Checked Nov 8, 2026paypal.com(opens source in a new tab)
- “PayPal Checkout 3.49% + fixed fee”
- Card payments fee
- 2.99% + fixed fee (US)
- Checked Nov 8, 2026paypal.com(opens source in a new tab)
- “Standard Credit and Debit Card Payments 2.99% + fixed fee PayPal Pay Later options 4.99% + fixed fee All Other Commercial Transactions 3.”
- Fixed fee
- $0.49 per US dollar transaction
- Checked Nov 8, 2026paypal.com(opens source in a new tab)
- “US dollar 0.49 USD”
- International fee
- Extra 1.50% on international commercial payments
- Checked Nov 8, 2026paypal.com(opens source in a new tab)
- “international commercial transactions Payment Type Rate All Commercial Transactions 1.50%”
Venmo facts
3 of 3 verified- Monthly fee
- None
- Checked Nov 8, 2026venmo.com(opens source in a new tab)
- “Monthly fee $0.00 No monthly fees.”
- Sending money
- Free from balance, bank or debit card
- Checked Nov 8, 2026venmo.com(opens source in a new tab)
- “PayPal account using your balance, debit card or bank account $0.00 No fee to send money to a Venmo account or U.S. PayPal account using your Venmo balance, debit card or bank account.”
- Credit card fee
- 3%
- Checked Nov 8, 2026venmo.com(opens source in a new tab)
- “PayPal account using your credit card 3.00% There’s a 3.00% fee for sending money to a Venmo account or U.S. PayPal account using your credit card.”
Pros and cons of PayPal
- Accepted at a very large number of online stores
- Works on any phone and in the browser
- Purchase Protection on eligible purchases
- Fees on some transfers, currency conversion and receiving payments
- Not a full tap-to-pay phone wallet in most countries
- Features like Pay Later and crypto vary by country
Pros and cons of Venmo
- Free to send money from balance, bank or debit card
- Can pay US PayPal accounts as well as Venmo users
- Accepted at checkout in many online stores and apps
- 3% fee when you pay with a credit card
- US only
- Public-by-default social feed needs privacy settings changed
Other apps to consider
Apple WalletInstead of PayPal
Apple Pay in stores, apps and Safari with no Apple fees, if you're on iPhone.
Cash AppInstead of Venmo
Adds stock and bitcoin investing, free tax filing and a debit card with no monthly fee.
WiseInstead of Venmo
For paying people in other countries, with mid-market exchange rates instead of marked-up ones.
ZelleInstead of Venmo
Sends money straight between US bank accounts from your bank's own app, with no separate balance.
PayPal vs Venmo: common questions
Is PayPal better than Venmo?
PayPal owns Venmo, but they do different jobs. Venmo is a US-only app for splitting bills and paying friends, free from a balance, bank or debit card. PayPal is a broader digital wallet for checking out at online stores, with Purchase Protection, Pay in 4 and availability in many countries. Pick Venmo for paying friends in the US; pick PayPal for online shopping, selling or anything outside the US.
Is PayPal free?
PayPal has a free plan, with paid plans for more features. See its verified pricing facts above for current limits.
Is Venmo free?
Yes, Venmo is free.
Is PayPal or Venmo open source?
Neither is open source.
Which platforms do PayPal and Venmo support?
PayPal: Web, iOS and Android. Venmo: iOS, Android and Web.