Venmo Square is a feature that allows users to send money to friends and family with just a few taps on their screen. It's essentially a digital wallet that lets you split bills, pay for group activities, and even lend money to friends.
To use Venmo Square, you'll need to have a Venmo account and the Venmo app installed on your phone. This is because Venmo Square is a mobile-only feature.
Venmo Square is designed to make it easy to split bills with friends, whether it's for dinner, a movie, or a night out at a bar. You can simply create a "Venmo Square" with your friends, and then add the total amount you need to split.
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How Venmo Square Works
Venmo and Square Cash work similarly when it comes to sending money, but there are some key differences.
You need to link your bank account to Venmo right away, which is necessary for receiving funds and transferring them to your account. This is because you can't receive money without a linked bank account.
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Square Cash, on the other hand, only requires a debit card to get started. However, you'll need to link your bank account later on for receiving money.
Both services are free when sending money with a bank account or debit card. Credit cards are optional, but they come with a 3 percent fee on both Venmo and Square Cash.
You can easily send money on both apps by tapping the contact you want to send money to, entering the amount, and sending it off. If the recipient doesn't have a Venmo or Square Cash account, they'll need to sign up for the one you used.
You can cancel payments on both apps at any time and get a refund if the recipient never signs up.
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Features and Integration
Venmo's social feed is the first thing you see when you open the app, making it a great way to stay connected with friends and family.
I have dozens of friends using Venmo, which is a huge difference-maker for me. Their transactions listing on my iPhone 7 Plus can only fit a day's worth on screen before I have to scroll.
Don't worry, your financial information isn't shared in the feed, and the amount of money being paid or requested isn't visible either. You can even choose to make individual transactions private if you wish.
Square Cash, on the other hand, has an activity feed that only shows payments involving you, which is a more limited experience compared to Venmo.
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Receiving Money
Receiving money is a breeze with both Venmo and Square Cash. You can simply receive money, and it will automatically go into your account.
Both apps allow you to leave the money in your account or cash out and transfer it to your bank account. No fees or minimums apply to transfer funds to your bank.
Square Cash has an added benefit of an Auto Cash Out feature, which automatically transfers funds to your bank account when enabled. This feature is a huge perk over Venmo, which requires you to manually request a transfer.
Receiving money is free on both services, and you can transfer it to your bank account without any hassle.
Social Integration
Venmo's social feed is the first thing you see when you open the app, making it a primary focus of the platform.
I have dozens of friends using Venmo, which makes a huge difference to me - it's incentive to use the app.
The feed shows a stream of activity with comments about the payments, and friends can like or comment on the activity as well.
You can choose to make transactions private if you wish, and none of your financial information is shared in the feed.
The activity feed in Square Cash only shows payments involving you, and posts are organized in a nice conversation view.
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Comparison with Other Services
Venmo Square is a convenient option for mobile payments, but how does it stack up against other services? PayPal is another popular choice, but its fees are higher than Venmo Square's, with a 2.9% + $0.30 per transaction fee compared to Venmo Square's 3% fee.
Zelle is a peer-to-peer payment service that's often compared to Venmo Square, but it doesn't offer the same level of user experience, with no mobile app and limited customer support.
Google Pay and Apple Pay are digital wallets that can be linked to Venmo Square, allowing users to make payments with their smartphones, but Venmo Square's in-app checkout feature is more seamless.
Cash app is another mobile payment service that's similar to Venmo Square, but it charges a higher fee of 3.25% + $0.25 per transaction.
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Frequently Asked Questions
What's better, Square or Venmo?
For business payments and high-value transactions, Square is a better option due to its higher payment limits. If you need to send or receive large amounts, Square is the more suitable choice.
Who pays the 3% fee on Venmo?
The 3% fee on Venmo is charged to the sender when they use a credit card to make a payment. This fee is typically added to the payment amount.
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