If you are seeking a way to send and receive money for business or personal use, you might be thinking about whether you should use the Cash App vs PayPal. While both are outstanding, they have both their advantages and disadvantages. You will want to know more about this before deciding which one to use.
Read our guide to learn how Cash App and PayPal actually work, the advantages and disadvantages of Cash App and PayPal, and the final decision on which one you should choose.
How Does Cash App Work?
Cash App is an app that provides a service to make and receive funds on mobile. The cash app was originally developed by Square Inc. company in 2009.
To use the Cash App, you have to download the cash app on your mobile. Then, enter your phone number or email to create an account. After confirming your email address or phone number, the cash App will ask you to enter your debit card and create a Cashtag username. The Cashtag phrase will be your username that folks can look up to send you funds.
You can also select the option of linking your bank account with the cash app account. To send or receive money, just write the money amount you want to transfer or request, and click the “Request” or “Pay” button. It is an Android App you can install on your phone.
How Does PayPal Work?
PayPal is a U.S organization with both an app and a website where you can send and receive money online. PayPal was founded in 1998.
To use PayPal, you can use the signup feature through the app or PayPal website. You can select to link a credit or debit card to your account or your bank account. To send or request money, all you have to do is click the “send” or “request” button and input the recipient’s email or cell phone number, and the amount of money.
Cash App vs PayPal: Pros and Cons
If you are considering to try Cash App for your phone transactions, here is a quick advantages and disadvantages list of using Cash App:
Cash App has grown in popularity because it’s a modern solution to sending and receiving money with your phone. Also, there are some significant benefits to check out:
- $5 Referral bonus for inviting and sharing with friends.
- Extremely simple design and comfort of navigation.
- Opening a Cash Card allows you to pay online and in-store with your Cash App account.
- Contains extra features like investing, cash card, banking, bitcoin, etc.
- You can block or unblock someone on Cash App
- Simple to avoid fees and instantly transfer money to family and friends.
Plus, Cash App’s benefit is that you just need a Cashtag or name and email to transfer money, giving rise to making it very easy to use while on the go.
Despite the popularity of the Cash App, there are a few disadvantages to consider as well:
- Cash App Only works in the U.S. and the UK.
- You have a $1,000 send/receive limit for any 30 days unless you verify your identity with Cash App.
- Cash App is not FDIC insured, meaning you should not store a huge amount of money in your account. Cash App also missing buyer safety, unlike PayPal, so I would not prefer Cash App to sell things online over PayPal.
- 3% fee for sending cash with a credit card.
- Lackluster subsidizing features compared to zero-fee brokerage accounts.
- 1.5% fee for instant transfers to your bank account.
Most of the disadvantages are valid but remember that you can prevent all fees by associating a bank account and not selecting instant transfers on departures.
Pros and Cons of Paypal
If you are deeming using Paypal, here are the advantages and disadvantages to deduce which mobile app is good for you:
There are numerous justifications why PayPal has organized itself as one of the most outstanding ways to send and receive obtaining money online:
- Simple to prevent fees for personal use, especially if you utilize the Friends & Family feature.
- Different personal and business account choices.
- Extra spotlights like Paypal card, cashing checks, discounts, sending abroad, etc.
- Sharp sending and withdrawals.
Despite its rage, PayPal has various different disadvantages.
- Many business account fees.
- 1% instant transfer fee.
- No investing, bitcoin, referrals, or real banking characteristics.
- 5% fee for transfer money abroad.
Plus, PayPal has a mixture of international transfer fees and trade rate fees, which can rack up if you are getting paid in one currency but residue it into a bank account with another currency.
While Paypal may have a high amount of fees, personal accounts are comparable to Cash App in periods of just transferring and obtaining money. Also, Paypal is the only one that even encompasses a business agency account.
The Verdict: Cash App vs. PayPal
Across the board, I would say Cash App is the winner for your personal use. If you need to send or obtain cash to your friends, it is easy to utilize and has other characteristics like cashback discounts and bitcoin buying that make it stand out against PayPal.
However, if you are someone who desires giving rise to transfers internationally (for personal use), or you love the idea of transferring instant residues to your bank often, go with PayPal.
For businesses, PayPal is your better option between these two, even though there are fees pertained with obtaining payments. This is because PayPal delivers adequately security features, such as conflict determination and payment safety.
The Bottom Line
There are advantages and disadvantages to both PayPal and Cash App, and one is not automatically more decent than the other. It highly depends on what you like to use them for, but across-the-board, Cash App does have extra characteristics usable to you for personal use. Nonetheless, PayPal is normally great for businesses because you can use it to ratify payments on your website or blog and deal with a huge quantity of payments. Advantageous for you, you can utilize both!