Zelle vs. Venmo: Which is better?

International money transfer

In today’s digital economy, choosing the right payment app is important. The right app can save you time and money by eliminating complex processes and minimizing fees for your transactions. In contrast, an unreliable payment app might lead to delays, costly complications, and even security risks.

In this article, we compare two of the most widely used payment apps today—Zelle and Venmo. According to a recent eMarketer survey¹, Zelle commands the top post among P2P apps, while Venmo continues to innovate with new features to keep its user base engaged. Ultimately, the choice is yours to make as we uncover the strengths and differences of these two contenders in the Venmo vs. Zelle debate.

Zelle vs. Venmo: Understanding the basics

Before we delve into their features and unique offerings, let’s get to know the two companies first.

Zelle

Zelle is a person-to-person (P2P) service launched by Early Warning Services, LLC. It partners with major banks and financial institutions in the United States, including Bank of America, East West Bank, Wells Fargo Bank, and Citi to facilitate instant money transfers between US bank accounts. Although it has no standalone wallet functionality, Zelle is integrated into more than 2,200 banking apps.²

In 2023, Zelle reported facilitating 2.9 billion transactions with a total transaction value of $806 billion. With 120 million consumer and small business user accounts, Zelle continues to dominate the P2P space in the United States.³

Venmo

In 2009, Venmo⁴ was launched as an app for social payments between friends. It allowed people to quickly transfer funds to their friends for splitting bills, sending gifts, and other casual transactions. It also allowed users to keep a balance in their Venmo wallets. Since then, it has become a popular payment app accepted by most merchants in the United States.

When PayPal acquired Venmo in 2013⁵, it rolled out new functionalities to further engage Venmo users. Its social features allowed users to send notes and emojis to each other. Now, users can apply for a Venmo Mastercard Debit Card that can be used for both online and in-store purchases. At the end of the first quarter of 2024, Venmo had $69 billion worth of total payment volume⁶. This solidifies its position as a reliable payment platform.

Key differences between Zelle and Venmo

Here is a quick peek at the key differences between the two payment apps. Further on, we will explore their unique offerings and typical use cases.

	Zelle	Venmo⁷
Account setup and monthly fees	None	None
Transfer speed	Instant (between Zelle users) 1 to 3 business days (for unenrolled recipients)⁸	Within minutes (Instant) 1 to 3 days business days (Standard, Venmo to bank) 3 to 5 business days (Standard, bank to Venmo)⁹
Transfer limits	Depends on partner banks or credit unions’ limits *Using the Zelle app (for transfers to banks and credit unions that do not offer Zelle): $500 send limit per week $5,000 receive limit per week¹⁰	$299.99 per week (for unverified accounts) $60,000 per week (for verified accounts)¹¹
Transfer fees	No charges from Zelle, but some banks or credit unions may charge fees for the transaction¹²	Free for Standard transfers 1.75% of the transfer amount for Instant transfers (min. of $0.25 and max. of $25)¹³
International transfers	Not supported	Not supported
Supported platforms	Banking apps (with Zelle integration) Zelle app	Venmo app Venmo website
Social features	None	Integrated social feed
Additional features	Direct bank-to-bank transfers	Buy, sell, and transfer cryptocurrencies Venmo Mastercard Debit Card

Zelle: pros and cons

Here is a closer look at the benefits that Zelle offers and the challenges you might encounter while using it.

Zero fees. The Zelle app can be downloaded and used for free. Any individual with a US bank account can create a Zelle account and use it for money transfers. This P2P payment system does not charge any fees for transactions through Zelle.
Fast transfer speed. Due to its close partnership with major banks, transfers occur almost instantly. Transactions with unenrolled recipients or non-partner banks may take longer but are often completed within three days.
API integration. Zelle APIs are embedded into more than 2,200 banking apps so bank users can easily use Zelle without having to download any additional apps.
Secure transactions. Since Zelle is connected to bank accounts, there is no need to link external accounts and share sensitive banking details during transfers. Transactions simply use email addresses or mobile phone numbers to identify recipients.
Bank-level authentication. Zelle leverages the authentication process of its partner banks. Biometrics, 2FA, and other login systems further enhance the security of Zelle transactions.

Hidden fees. Zelle itself does not charge fees for transfers. However, banks or credit unions may impose fees for certain transactions. These unexpected charges can catch users off guard, so it is important to confirm any associated costs with your bank before you initiate a transfer.
Bank-dependent access. To send or receive money with Zelle, you must have a checking or savings account with a US bank. This excludes access to Zelle services for unbanked individuals.
Basic features. While Zelle offers a standalone app for users whose banks do not integrate with the service, it lacks advanced features, such as social sharing, cryptocurrency payments, or mobile wallet functionalities.
Poor consumer protection. Zelle can be used to pay for purchases to individual merchants or small businesses. However, it does not offer purchase protection¹⁴ and cannot cancel payments¹⁵ that have already been sent to small businesses.
Limited coverage. Zelle can only facilitate transfers between US bank accounts and does not support international money transfers.

Venmo: pros and cons

Now, let’s weigh the pros and cons of Venmo to see how it fares against Zelle.

User-friendly. Venmo’s interface is easy to use. Users can easily navigate through the app to pay for purchases, receive money, split bills, share expenses, and transfer funds. Moreover, Venmo-to-Venmo personal transfers are free of charge.
Wide acceptance. Venmo is accepted as a payment method by many merchants, both online and in physical stores. This makes it a convenient payment app for both personal and business use.
Social features. Venmo turns P2P payments into social experiences. Users can add custom notes and emojis to transactions or comment on friends’ activities in their social feeds. These features add a fun element to the app.
No maintaining balance. There are no minimum balance and monthly fees required for Venmo wallets. This appeals to individuals who want to start their journey toward financial stability but can’t keep up yet with the balances and fees required in traditional banking.
Value-added services. Venmo offers additional features, such as earning cashback, buying cryptocurrency, and customizing rewards. It also offers a Direct Deposit¹⁶ feature, which allows users to get their pay up to two days early for a cash flow boost.

Transaction fees. While sending money between friends is typically free, users incur fees when using a credit card to fund transactions, choosing instant transfers, receiving payments for goods or services, and receiving donations. The fees¹⁷ can add up, making Venmo less cost-effective for larger amounts.
Not designed for international use. Venmo is primarily designed for domestic transactions, and you can’t use it to send money internationally. This limits its use if you need to make cross-border payments.
Requires a US bank account or card. To fully use Venmo, you need a US bank account or a US-issued debit/credit card, which excludes people from other countries or those without access to these financial tools.
Privacy concerns. By default, Venmo transactions are visible to other users on the app¹⁸. Though you can adjust privacy settings, the social nature of the app means some users may inadvertently share more than they intended.
Limited consumer protection. Unlike Zelle, Venmo has a Purchase Protection program¹⁹, albeit relatively limited. While Venmo offers consumer support, some users have reported delays or difficulties in resolving issues, especially in cases of fraud or transaction disputes.

Alternatives to Zelle and Venmo

While both Zelle and Venmo are among the most preferred payment apps in the United States, with almost 4 in 10 US adults likely to use them²⁰, both apps are limited to transactions within the country. Zelle can only be used for transfers between US-based banks and Venmo cannot be accessed beyond the United States.

For international money transfers, BOSS Revolution provides more flexibility compared with the two apps. BOSS Revolution has a vast network of partners in over 59 countries, enabling seamless transfers to hundreds of locations worldwide. Moreover, it offers multiple payout options, including cash pickups, bank deposits, and mobile wallets.
If you’re looking for an app that allows you to send instant international money transfers at lower fees, consider BOSS Revolution.

Which is better: Venmo or Zelle? Use cases for each app

The main difference between Zelle and Venmo lies in their usability and features. In a nutshell, Zelle is better for US-based bank-to-bank transfers while Venmo has more to offer in terms of payments and money management.

Zelle is ideal for users who need simple solutions for bank-to-bank transfers that are fast and secure. It is a good choice for you if you do not need additional features beyond sending and receiving money to and from US bank accounts.

Venmo is best for users who prefer a mobile wallet that offers versatility and value-added services. Its features are designed for ease of payment and money management. Choose Venmo if you want a versatile digital wallet that lets you interact with other users.

In choosing between Zelle and Venmo, consider your specific needs. Again, go for Zelle if you want a straightforward solution for bank-to-bank transfers and Venmo for a dynamic social payment experience. However, if you are seeking alternatives that enable international money transfers, BOSS Revolution offers a reliable option for sending money abroad. With an easy-to-use app, no hidden fees, and no bank account requirements, BOSS Revolution is best for users who need cross-border payment solutions.

Zelle vs. Venmo FAQs

Which is safer: Zelle or Venmo?

Both Zelle and Venmo use encryption²¹ and authentication²² features to protect account details and secure transactions. When used correctly, following recommended security protocols, they are typically safe to use.

Is Venmo and Zelle the same?

No, Venmo and Zelle are distinct platforms with different offerings. Venmo is primarily a social payments app that comes with a digital wallet and social features. Meanwhile, Zelle specializes in bank-to-bank transfers and has APIs integrated into the apps of major banks.

Can you use Zelle or Venmo internationally?

No. Unfortunately, Zelle only works between US-based banks, and Venmo can be used only within the United States. For international money transfers, use BOSS Revolution instead.

Does Venmo work with Zelle?

No, you can’t transfer funds directly from Zelle to Venmo accounts or vice versa. Zelle enables transfers only between US banks.

Which is more popular: Zelle or Venmo?

In 2022, Venmo was slightly more popular than Zelle among US adults²³. However, this may soon change as recent surveys indicate that the young Gen Z crowd has started to embrace Zelle, resulting in a constantly increasing share of P2P transaction value and usage for Zelle²⁴ and putting it at the helm of P2P payment apps²⁵.

Bottom line

Both Zelle and Venmo have unique advantages and disadvantages. Zelle offers speed and simplicity in bank transfers, while Venmo offers social elements and functionalities that ease digital payments. If you are still deciding whether to choose Venmo or Zelle, consider evaluating your needs and priorities first. Are you looking for speed and traceability? Is the cost of services and transactions important? Do you need value-adding and fun features? Answering these questions can help you choose the best payment app for you.

If fast international money transfers are your priority, consider BOSS Revolution. Our app empowers you to send money transfers to hundreds of locations at low costs and high conversion rates.

Sources: all third party information obtained from applicable website as of December 19, 2024

https://www.emarketer.com/content/us-mobile-p2p-payments-forecast-2024
https://www.zellepay.com/get-started
https://www.zellepay.com/press-releases/zelle-soars-806-billion-transaction-volume-28-prior-year
https://venmo.com/about/us/
https://www.investopedia.com/articles/personal-finance/010715/venmo-its-business-model-and-competition.asp
https://www.statista.com/statistics/763617/venmo-total-payment-volume/
https://venmo.com/resources/our-fees/
https://www.zellepay.com/support/enroll-with-the-zelle-app-using-my-online-banking-username-and-password
https://help.venmo.com/hc/en-us/articles/360012932154-Adding-Money-to-Your-Venmo-Balance & https://help.venmo.com/hc/en-us/articles/221083888-Bank-Transfer-Timeline
https://www.zellepay.com/faq/there-limit-how-much-money-i-can-send-or-receive
https://help.venmo.com/hc/en-us/articles/221010968-Personal-Profile-Payment-Limits
https://www.zellepay.com/faq/are-there-any-fees-send-money-using-zelle
https://venmo.com/send-receive/manage-balance/
https://www.zellepay.com/faq/im-unsure-about-using-zelle-pay-someone-i-dont-know-what-should-i-do
https://www.zellepay.com/faq/consumer-using-zelle
https://venmo.com/send-receive/direct-deposit/
https://venmo.com/resources/our-fees/
https://help.venmo.com/hc/en-us/articles/28676178614675-Who-can-see-my-Venmo-payments
https://help.venmo.com/hc/en-us/articles/1500010381401-Buying-and-Selling-on-Venmo-FAQ
https://help.venmo.com/hc/en-us/articles/360035844973-About-Venmo-Security
https://www.zellepay.com/faq/my-information-secure
https://www.pewresearch.org/short-reads/2022/09/08/payment-apps-like-venmo-and-cash-app-bring-convenience-and-security-concerns-to-some-users/
https://www.emarketer.com/content/gen-z-driving-mobile-wallet-payments-which-venmo--apple-pay--zelle-s-benefit
https://www.emarketer.com/content/us-mobile-p2p-payments-forecast-2024

This article is provided for general information purposes only and is not intended to address every aspect of the matters discussed herein. The information in this article is not intended as specific personal advice. The information in this article does not constitute legal, tax, regulatory or other professional advice from IDT Payment Services, Inc. and its affiliates (collectively, “IDT”), and should not be taken or used as such by any individual. IDT makes no representation, warranty or guaranty, whether express or implied, that the content in this article is current, accurate, or complete. You should obtain professional or other substantive advice before taking, or refraining from, any action on the basis of the information in this article.