One of the recent battles that has emerged for both businesses and personal use has been Cash App vs PayPal. Both apps have similar functions, however each does have their own specific set of pros and cons.
The goal in this article is to help inform you of the advantages of both platforms and then help you arrive at the decision of who is better when looking at Cash App vs PayPal.
To get a good idea, we are going to have to look at both platforms and talk about how they work in basic terms. Once that is done, we can analyze the pros and cons of each.
Both apps do have their own strengths, so don’t expect a landslide victory in the Cash App vs PayPal battle.
A Brief Rundown of Cash App
Cash App was created in 2009 by Square Inc. and it has been used ever since to help a person make and receive mobile payments.
If you want to use the app, the first thing you are going to have to do is download it onto your phone.
Once the app has been installed, you create an account and then add a debit card and create a Cashtag name. This is your username and this will be how people can find you to send you money. If you want, you also have the choice of attaching your bank account directly to the app, forgoing the debit card.
Sending and receiving money is as simple as ever as all you need to do is click either send or request and then fill in all the relevant information.
A Brief Rundown of PayPal
Similar to Cash App, PayPal is both an app and a website that allows you to send and receive payments to other people. PayPal has more longevity than Cash App as the website has been around since 1998.
To use PayPal, you can either go right onto their website and create an account, or download their app and do it that way. Just like with Cash App, you can send and request money just by clicking their respective buttons.
PayPal has several features for companies and one of the biggest benefits is that you can create invoices on the website using their own template.
This makes billing companies rather easily. PayPal also features many different tools for business, making things like inventory tracking much easier.
Now that we’ve briefly discussed what each app is, it’s time to talk about the pros and cons of each so we can make a decision regarding Cash App vs. PayPal
The Pros of Cash App
The biggest pro in regards to Cash App is the fact that there are no fees for receiving money. If you choose to send money, as long as you are doing it from your debit card or bank account you also will receive no fees.
Cash App is also extremely user friendly and very easy to learn and use on a daily basis.
In regards to transfers, you can transfer money to your bank account and it will be reflected in about 1-3 business days. If you need the money instantly, you have that choice, but it will come with a 1.5% transaction fee.
In terms of using your balance, not only can you pay for things online using your Cash App account, you can also get a Cash App debit card that you can use. This added option is useful when it comes to making purchases.
Cash App also features the option to invest in stocks and even buy bitcoin. Purchasing can be done directly through the app and your transactions will be processed immediately. This makes it an easy site to purchase and move bitcoin around if that is what you are looking to do.
In terms of deals and offers, there are some companies and stores that have a partnership with Cash App.
Be on the lookout as some places will offer you 10% off your purchase, or even cashback. Cashback is processed instantly on the app and can be used immediately as well.
The last major benefit of using Cash App is the referral program. You get $5 for everyone who signs up using your referral code and they also receive it also. Everyone wins when first signing up and creating an account.
The Cons of Cash App
Places like Cash App have to make money somehow and unfortunately they do have fees in other areas. If you are looking to use a credit card to send money, you are going to be subject to a 3% transaction fee. As mentioned above, the instant deposit also comes with a fee.
Sometimes transactions to send money over to the account can take a full three business days as well which can be rather frustrating if you are looking to make a sudden purchase.
Finally, and perhaps the biggest con towards Cash App is that you can’t transfer money internationally. The only two countries that can send money between each other are the U.S. and the U.K.. This can be a huge detriment to companies that need to make international payments.
Now that we’ve learned about Cash App, let’s hop over to PayPal for this Cash App vs PayPal comparison
The Pros of PayPal
Looking at fees, there are no fees in place if you are sending money towards friends or family via your bank account on PayPal. The same goes for receiving money from your friends and family.
Just like with Cash App, you are going to be waiting 1-3 business days for your funds to transfer over, however this time you can pay a 1% fee to have access to it immediately.
PayPal is also one of the easiest sites to use in regards to making payments and receiving money. There is a reason why they have been around for so long and they have only gotten better.
There are plenty of different features on PayPal like an invoice generator which can simplify your workload and make things easier.
Security on PayPal is top notch and it is one of the most credible websites when it comes to ensuring your financial safety. This is important for the next pro of PayPal.
PayPal allows you to transfer funds across more than 200 different companies. It is great for an international business and the extra layer of security will ensure that everything is safe.
The Cons of PayPal
Similarly to Cash App, PayPal has to find a way to fund their business somehow and they do this in the form of fees. Businesses receive a charge of 2.9% on transactions and $0.30 as well. If you are planning on sending or receiving money internationally, you will be getting hit with a 4.4% fee.
Another thing to discuss is that some banks attach a transfer fee when they see that you are sending money to PayPal.
When looking at Cash App vs PayPal, you have to decide what you are planning on using your account for.
If you are strictly intending on using it to receive and send money on a personal level, Cash App is great as you can dodge a lot of fees and even have a card to help with purchases. The cashback deals also give you plenty of power as a consumer and can help you save money.
While PayPal does have some fees, it is one of the best websites for sending money internationally as it will do so safely and rather quickly as well.
There are also several different layers of protection in place for businesses on PayPal which can help defend you if a consumer makes a claim.
So Who Wins?
Honestly, we have to say there is no real winner in the Cash App vs PayPal battle. They both have their uses and while they are similar, they are also very different.
Sit down and find out what you are going to be using your account for and then make the decision from there.