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PayPal vs. Venmo vs. Cash App: Which Is Best in 2025?
If you live in the U.S., chances are you’ve used at least one of these apps: PayPal, Venmo, or Cash App. They’ve become part of our daily lives—whether it’s paying for an online order, splitting dinner with friends, or sending rent money to a roommate.
But here’s the thing: each app shines in different situations. In 2025, fees, protections, and even tax rules have changed, so it’s worth asking: Which one is actually the best for you right now?
I’ve personally used all three for different reasons—PayPal for selling items online, Venmo for paying friends, and Cash App for day-to-day spending—and I’ll walk you through how each one works, where it excels, and where it can catch you off guard with fees.
PayPal in 2025: The Old Reliable
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If I had to describe PayPal in one sentence, it’s the safe option for buying and selling with strangers.
I’ve used PayPal to get paid for freelance work and also to sell my old laptop online. What I love is that when you use the “Goods & Services” option, you’re covered by PayPal’s Purchase Protection. If the buyer claims the item never arrived, PayPal can step in. It’s not perfect, but it’s much safer than sending money as if it were cash.
Where PayPal Shines:
- Buying from small online shops that don’t take cards directly
- Getting paid for freelance gigs or reselling items
- Sending money abroad (Venmo and Cash App can’t do this)
Things to Watch Out For:
- Instant transfer fee is 1.75% (I once paid $17.50 just to move $1,000 instantly—ouch).
- If you send money using a credit card, PayPal charges 2.9% + a fixed fee.
- Sometimes disputes can drag out if the other person fights back.
Personal tip: If you’re selling something locally (like on Facebook Marketplace), always ask buyers to pay using PayPal’s Goods & Services. Yes, you’ll pay a small fee, but it’s way better than losing both the item and the money.
Venmo in 2025: The Social Money Splitter
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Venmo is the app I use the most with friends. Splitting rent with a roommate? Paying for pizza? Covering gas money? Venmo makes it feel casual and easy.
There’s even a social feed (like Instagram for your payments). Personally, I set mine to private—I don’t think the world needs to know I paid my buddy for “🍕and 🍻.” But if you like seeing what friends are up to, it can be fun.
Where Venmo Shines:
- Splitting bills with friends in the U.S.
- Sending quick payments without overthinking
- Optional buyer protection when you toggle “Mark as Purchase”
Things to Watch Out For:
- Venmo is U.S.-only (if you travel abroad, it’s useless).
- Instant transfer also costs 1.75% (same as PayPal).
- Sending money with a credit card costs 3%—not worth it.
Personal tip: If you’re buying something from a stranger (like concert tickets online), always toggle “Mark as Purchase.” I once bought second-hand event tickets, and the seller ghosted me. Luckily, I had marked it as a purchase, so Venmo refunded me. If I hadn’t, I would’ve been out of luck.
Quick Comparison: PayPal vs. Venmo vs. Cash App (2025)
Best Use:
- PayPal → Great for online shopping, selling items, and sending money internationally.
- Venmo → Perfect for splitting dinner bills or paying friends within the U.S.
- Cash App → Works best as a daily wallet since it comes with a debit card and ATM access.
Instant Transfer Fees:
- PayPal → Charges 1.75% per transfer, with a minimum of $0.25 and a maximum of $25.
- Venmo → Same as PayPal — 1.75% (min $0.25, max $25).
- Cash App → Slightly different. Fees range between 0.5% and 1.75%, depending on how fast you want the transfer.
Credit Card Fees:
- PayPal → 2.9% plus a small fixed fee (usually around 30 cents).
- Venmo → Flat 3% fee whenever you use a credit card.
- Cash App → Around 3%, but the exact amount shows up at checkout.
Buyer Protection:
- PayPal → Strong protections for purchases when you use the “Goods & Services” option.
- Venmo → Only works if you mark the payment as a “purchase.” If you send money as a friend, you’re not covered.
- Cash App → Pretty limited. Protection only really applies if you buy something with your Cash App Card.
Cards & ATM Access
- PayPal → Offers its own debit card you can use for purchases and ATM withdrawals.
- Venmo → Has a Venmo debit card too, useful for everyday spending.
- Cash App → Comes with a free Visa card. If you set up direct deposit, you even get ATM fees refunded.
Availability:
- PayPal → Works in the U.S. and many countries worldwide.
- Venmo → Only available in the U.S.
- Cash App → U.S. only as well (they shut down their UK service in 2024).
In short:
- Choose PayPal if you need international payments or strong buyer protection.
- Choose Venmo if you mostly pay or split bills with friends in the U.S.
- Choose Cash App if you want an all-in-one wallet with card and ATM access.
Cash App in 2025: The Everyday Wallet
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Cash App feels the most like a replacement for a checking account. It’s simple, clean, and comes with a free Cash Card (Visa debit). I use it like a second wallet—especially when I want to separate fun money from my main bank.
The biggest win? ATM access. Neither Venmo nor PayPal really works as an ATM card, but Cash App does. Yes, it charges a $2.50 fee, but if you set up direct deposit (like your paycheck), Cash App actually refunds ATM fees.
Where Cash App Shines:
- Every day spending with the Cash Card
- Using ATM withdrawals when needed
- Boosts (discounts at restaurants, stores) that actually save money
- Option to dabble in stocks or Bitcoin (if you’re into that)
Things to Watch Out For:
- Instant transfer fee is 0.5%–1.75%, depending on how fast you want the money.
- Sending money with a credit card also has a fee.
- Peer-to-peer transfers are basically final—you can request a refund, but if someone scams you, it’s tough to get money back.
Personal tip:
If you plan to use Cash App at ATMs, set up direct deposit. I switched my side hustle payments into Cash App just to trigger free ATM withdrawals—it saves me about $8–$10 a month in fees.
Safety & Tax Rules (What Changed in 2025)
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This is the boring part most people ignore—but it matters.
- Safety: None of these apps is are actual bank. Your money is only insured (FDIC coverage) when held through their partner banks. Don’t leave big balances sitting there—transfer it to your real bank.
- Two-Factor Authentication: Always turn this on. A friend of mine got hacked because she had no extra security, and she lost $300 before she could stop it.
- Taxes: Starting in 2025, payment apps must send you a 1099-K tax form if you receive over $2,500 for goods/services (this will drop to $600 in 2026). Personal payments (like gifts or splitting dinner) don’t count—but make sure you label payments correctly.
Which App Should You Use?
- PayPal → Best for online shopping, side hustles, and selling to strangers.
- Venmo → Best for splitting bills and paying friends in the U.S.
- Cash App → Best for daily spending, ATM access, and simple money management.
My rule of thumb:
- Use PayPal with strangers.
- Use Venmo with friends.
- Use Cash App as your “everyday wallet.”
This way, you avoid most of the big fees and protect yourself from scams.
FAQs: PayPal vs. Venmo vs. Cash App (2025)
1. Is PayPal safer than Venmo or Cash App?
Yes, in most cases. PayPal offers the strongest buyer protection when you pay for goods or services. Venmo only protects you if you mark the payment as a purchase or pay a business account. Cash App is great for speed, but peer-to-peer payments are usually final—you only get protection when using the Cash Card for purchases.2. Which app has the lowest fees?
For free transfers, all three are similar if you use a bank account or debit card. But for instant transfers, Cash App can sometimes be cheaper since its fees start at 0.5% (while PayPal and Venmo charge 1.75%). For everyday use, stick with standard bank transfers to avoid fees.3. Can I use Venmo or Cash App outside the U.S.?
No. As of 2025, both Venmo and Cash App are U.S.-only. Cash App even shut down its U.K. operations in 2024. If you need international payments, PayPal is your best choice.4. Which app is best for splitting bills with friends?
That’s Venmo’s sweet spot. It was designed to make paying friends simple—whether it’s splitting rent, groceries, or pizza. PayPal feels too “formal” for casual splits, and Cash App works, but it doesn’t have the same bill-splitting vibe.5. Which one should I use for online shopping?
PayPal is the winner here. It’s accepted by millions of online stores and offers Purchase Protection if your order goes wrong. Venmo and Cash App don’t have the same level of protection or acceptance with retailers.6. Do I have to pay taxes on money I receive through these apps?
Yes—if you’re paid for goods or services. In 2025, the IRS requires apps to send you a 1099-K if you make over $2,500 from business transactions. But personal payments (like paying your roommate for rent) are not taxable. Just make sure you label payments correctly in the app.7. Which is the best app overall in 2025?
There isn’t a single “best”—it depends on your needs:- PayPal is = safest for online shopping, side hustles, and selling.
- Venmo = easiest for splitting bills with U.S. friends.
- Cash App = best everyday wallet with a card and ATM access.
Many people (including me) use all three together—like having different tools for different jobs.
Final Thoughts
In 2025, there’s no single “winner”—it depends on what you need. If you shop online or sell things, PayPal still rules. If your life revolves around splitting bills with friends, Venmo makes sense. And if you want a debit card with ATM access and some budgeting freedom, Cash App feels more like a bank replacement.
Personally, I keep all three installed because each one has its own sweet spot. Think of them like tools in a toolbox: you wouldn’t use a hammer for everything, right?
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