Transferring money between bank accounts used to be complicated. Today, money transfer apps offer a faster and more affordable way to pay or get paid.
Money transfer apps, also called peer-to-peer (P2P) money transfer apps, let you transfer cash from person to person, or from entity to entity, quickly, conveniently, cheaply, and securely. They simplify payments and also allow you to use a digital wallet to link your credit card or bank account. You can make electronic transactions and payments with just a few taps on a mobile device.
The best money transfer apps collect high app store ratings, help app shoppers shell out money safely, and involve no hidden fees. They also fit consumer-specific needs, such as international payments, social options, digital wallet offerings, and more.
But with so many apps out there, deciding on the best way to send money is easier said than done. Well, that is why we are here. Let’s dive right in.
Best Money Transfer Apps
Venmo
You might have heard people say, “Just Venmo me” or “I’ll Venmo that to you later.” That is because Venmo is one of the most popular apps for fast, peer-to-peer payments.
Venmo’s mobile app is easy to use and highly rated on both the Google Play and Apple App stores. You can link your Venmo account to your bank account or debit card to fund payments or cash out your Venmo balance. Transfers from one Venmo balance to another are free and instant.
However, you’ll have to pay a 3% fee to make a payment with a linked credit card. Venmo also charges a 1.75% fee if you want to cash out and have funds appear in your bank account instantly. Free bank account transfers take one to three business days.
To find a recipient on Venmo, simply search by their username or phone number, or scan their unique QR code. Venmo uses data encryption to keep your funds and information secure. However, because it’s so easy to add a recipient, there is some risk of sending money to the wrong person. Venmo doesn’t guarantee recovery for any mistaken transfers.
To make sure a new recipient is who you think they are, Venmo asks you to verify the last four digits of their phone number in the app the first time you pay them. You can also link your Venmo account to some rideshare and delivery apps, including Lyft and Uber.
Key Features
- Simple and Quick Transfers: Venmo allows for seamless exchange of money between users. It’s possible to send or receive money through this peer-to-peer payment app for free.
- Credit Card Transfers: You can send money via a credit card, but this incurs a 1.75% fee on the total amount transferred.
- Instant Cash-out Transfers: Venmo also provides instant cash-out transfers to your bank account with a fee of 1.75% ($0.25 minimum and $25 maximum).
- Interactive Experience: With Venmo, transactions aren’t just about money transfer. You can add emojis or animated stickers to make it a more personalized experience.
- Security: Venmo uses encryption to secure user information. Multi-factor authentication and a PIN add extra layers of security.
Cash App
Cash App stands out in the world of money transfer apps by serving as an alternative to a traditional bank account — sans federal insurance, or FDIC, an important caveat. Users can not only bank but also file their taxes and buy stocks using their Cash App accounts. As far as money transfers are concerned, Cash App allows you to pay and get paid quickly.
It is easy and fast, but just like Venmo, there is a risk of sending money to the wrong person, and the only way to recover it is to rely on them to send it back to you. This is a pretty big con, because who is going to send back free money?
Standard deposits are free and arrive within one to three business days. Instant deposits are subject to a 0.5%-1.75% fee — with a minimum fee of $0.25 — and arrive instantly on one’s debit card. Cash App is available in the U.S. and U.K. only.
Key Features
- Ease of Transfer: You can transfer funds to a bank account from your Cash App account or store money in the app. Sending a payment is as simple as entering the other person’s $Cashtag, phone number, or email address.
- Investment Options: Cash App allows users to explore investment opportunities.
- Bitcoin Transactions: The app enables buying and selling of bitcoin.
- Card Support: Cash App supports debit and credit cards from Visa, MasterCard, American Express, and Discover, as well as most government-enabled prepaid cards.
- Security: Cash App uses the latest encryption and fraud detection technologies, boasting PCI-DSS Level 1 compliance.
PayPal
Founded in 1998, PayPal is one of the oldest money transfer services on the market. Today, it’s a multi-function financial platform that includes a digital wallet, currency conversions, its own credit card, and the ability to buy and sell cryptocurrency.
One of PayPal’s main advantages is that it’s widely recognized and accepted as a payment method. If you need to send money to a business partner, for example, you can safely assume that they’re familiar with PayPal. It’s also easy to use from its website or mobile app. You can send money to PayPal accounts in over 200 countries and regions.
For domestic personal transactions, PayPal charges a 2.9% fee plus $0.30 to send money via a linked credit card. Sending money internationally incurs a 5% fee, plus a minimum of $0.99 with a maximum of $4.99, which is more than some competitors charge.
With PayPal’s Xoom service, you can use your PayPal balance or a linked account to transfer money to a foreign bank account, arrange a cash pickup or send money as a cash delivery. You don’t need to make a separate account with Xoom — you can access it through your PayPal account to make an international transfer.
Key Features
- Platform Compatibility: PayPal offers apps for iOS, Android, and Windows.
- Fast Transfers: The app enables speedy money transfers to multiple people at once.
- PayPal.Me Link: This link allows quick and secure payment options.
- Invoice Creation: Users can customize and track every invoice sent via PayPal.
- PayPal Cash Card: Users can access their PayPal balance through this debit card, which has a daily spending limit of $3,000 and an ATM withdrawal limit of $400 (30 transactions per day limit).
- Security Measures: PayPal employs robust encryption techniques to ensure the security of your information and monitors transactions round the clock.
Wise
The Wise app lets you send money abroad and open a Wise multi-currency account, which you can use to send and receive money. This feature puts it a cut above the average money transfer provider, most of which only offer the ability to send money internationally.
Wise is fully upfront with all of its fees. However, it is hard to determine the exact cost of a transfer, as there are multiple factors involved. When you send money with Wise, the fees you’ll pay will depend on:
- How much money you send: Wise charges a percentage fee, meaning the total amount will depend on the sum of your transfer – the more you send, the more you’ll be charged
- Where you send the money: The specific percentage fee that is applied to your transfer depends on the currencies and countries
- How you pay for your transfer: Lastly, you’ll find that most transfers using a debit card or credit card will cost much more than if you use a connected bank account and an ACH transfer
Sending money internationally with the Wise app can take anywhere from a few seconds to a few days. Once again, this depends on where you’re sending the money and how you pay for the transfer.
Wise doesn’t offer cash pickup or other delivery methods, and bank transfers can take over a week, so this is probably not the best platform for sending emergency funds to an international traveler. However, its affordability makes it one of the best money transfer apps for scheduled overseas transfers.
Key Features
- User-friendly Account Setup: Creating a free account on Wise is straightforward and takes only a few minutes. Wise prompts you at each step, whether it’s entering personal information or signing up with your Apple, Facebook, or Google account—a feature rarely seen in other money transfer services.
- Identity Verification: Depending on your location and the amount you’re transferring, Wise may need to verify your identity. This step typically involves uploading a picture of your photo ID and proof of address, and usually takes around two business days.
- Wise Debit Card: If you have a Wise account, you can sign up for a Wise debit card for a one-time fee of $9 USD. The card supports two free ATM withdrawals up to $100 each month, after which a fee of $1.50 USD is charged per withdrawal. A 2% fee applies to any withdrawal above $100.
- Multi-Currency Account: This free feature allows you to send, hold, and receive money in various currencies, simplifying international transactions.
- Large Transfers: Wise applies lower fees for large sums of money transferred (over £100,000 per transaction in U.S. dollars), either in one go or several times a month.
- Wise Assets: This feature allows you to invest money from your Wise account in the iShares World Equity Index Fund, which includes stocks such as Apple, Microsoft, and Tesla.
Western Union
Western Union stands as one of the most established and reliable services in the money transfer industry. Their expansive global footprint, covering over 200 countries and territories, and diverse transaction methods make it an attractive choice for many.
The advent of the Western Union app has only added to this convenience, removing the necessity to visit physical locations to complete transactions.
Key Features
- Wide Global Reach: Western Union enables money transfers to more than 200 countries and territories, making it an optimal choice for international transfers.
- Multiple Payment Methods: The Western Union app accepts various payment options, including bank accounts, credit cards, debit cards, and even Apple Pay, providing maximum flexibility to users.
- In-App Tracking: With the Western Union app, users can track their transfers in real-time to stay updated on their transaction status.
- Physical Pickup Options: Western Union offers the option to pick up cash at a physical location, a feature that sets it apart from most digital-only platforms.
Zelle
Zelle has a reputation as the easiest of the money transfer apps to transfer money directly to or from your bank account. This is because it eliminates the need for a separate virtual wallet or profile. Zelle partners with major U.S. banks to instantly send and receive funds between verified accounts.
One advantage of transferring money directly from your bank account is that the money is likely insured by the Federal Deposit Insurance Corporation (FDIC). This is in contrast to funds stored in your PayPal or Venmo balance, which are encrypted but not FDIC-insured. FDIC insurance can help protect your funds in case a bank fails (up to a certain limit, at least). Thanks to that security, Zelle can be a reliable method for sending payments to people you know and trust, such as for rent, online sales or payroll.
And because it is built into your bank account, Zelle also lets you skip the step of funding or cashing out your app balance.
Each financial institution sets its own limits for sending money with Zelle. For example, if you bank with Bank of America, you can’t send more than $3,500 or make more than 10 transfers per day. Also, not all banks offer Zelle. If yours doesn’t, you can still download the mobile app, but you’ll be limited to sending $500 per week.
One downside to Zelle is its lack of protection for users. It offers no protection for authorized payments — once you’ve sent money to someone, you are unlikely to get it back. You can report unauthorized payments (fraud or a hacked account) to Zelle and get a refund, but this process may take time.
As a result, Zelle is best for transfers between trusted friends, family or business partners. You should avoid using Zelle to send money to anyone you don’t personally already know and trust.
Key Features
- Easy Bank-to-Bank Transfers: Zelle stands out for its seamless bank-to-bank transfer process. Users can send or request money using an email address or phone number. Recipients, however, must have a Zelle account to send or receive money.
- Quick Transfers: Zelle transfers money directly into the recipient’s bank account, usually within minutes, offering speed and convenience.
- Security: Zelle ensures high security through its authentication and monitoring features.
- Cancellation: Zelle allows cancellation of a payment if the recipient hasn’t enrolled in Zelle. Payments cannot be canceled if the recipient already has a Zelle account.
WorldRemit
WorldRemit is available in over 130 countries, making it almost as popular as PayPal. Most money transfers made on this app are complete within 24 hours no matter where you’re sending the money to or from. First-time transfers are free. After that, fees depend on the bank and country, and it can all get rather complicated.
However, it is an ideal service for international money transfers as it is typically faster than a bank wire transfer.
You can use the WorldRemit app to send money abroad from over 50 countries to over 130 countries worldwide. When using the app in the US, you’ll be able to pay for your transfer by debit card, credit card, or Apple Pay. But beware that bank transfers are not available.
WorldRemit charges markups on its exchange rates between currencies — but those fees aren’t hidden. You can see the exchange rate in the app before you make your transfer. WorldRemit offers multiple delivery methods, including:
- Airtime top-up: Quickly top off a prepaid cell phone plan from anywhere in the world with no fees.
- Bank transfer: Transfer money directly to the recipient’s bank account.
- Cash pickup: The recipient picks up cash from a secure location.
- Mobile money: Transfer money instantly to the recipient’s mobile WorldRemit account.
Your first three transfers with WorldRemit are free of service fees. After that, the processing fee will depend on where you’re sending the transfer and how you’re paying for it.
Key Features
- Transfer Options: WorldRemit provides numerous ways to send money including cash pickup, bank transfer, mobile money, home delivery, and airtime top-up.
- Payment Methods: Accepts a range of payment methods including Visa, Mastercard, Klarna, Trustly, POLi, and Apple Pay, among others. Note that Google Pay is no longer accepted.
- Simple Process: The app, available for both iOS and Android, is user-friendly. It lets you choose the recipient country, enter the amount, recipient details, and bank information. Once paid, the recipient gets an SMS and email notification.
- Security: WorldRemit places a high emphasis on security. It’s approved by the Financial Conduct Authority (FCA), follows strict verification procedures, and has dedicated teams monitoring for unusual activity.
- Extensive Network: It works with a wide network of local partners and global banks.
- WorldRemit Wallet: While available only in select countries, any WorldRemit customer can send money to a WorldRemit Wallet.
How Do Money Transfer Apps Work?
Money transfer apps, also called peer-to-peer (P2P) money transfer apps, let you transfer cash from person to person, or from entity to entity, quickly, conveniently, cheaply, and securely. They simplify payments and also allow you to use a digital wallet to link your credit card or bank account.
Factors to Consider When Choosing Money Transfer Apps
Transfer Speed and Accessibility
- Instant Transfers: Ideally, the app should provide immediate transfers, especially for domestic transactions.
- International Access: If you need to send money abroad, the app should offer international transfers.
- Availability on Multiple Platforms: The app should be available on both iOS and Android devices for wider accessibility.
- Flexible Transfer Options: The app should allow transfers to various platforms, including bank accounts, other apps, and cash pick-up locations.
User-Friendliness
- Easy Setup: It should be simple to set up an account and input the necessary details.
- Intuitive Interface: The app should have a straightforward layout and easy-to-use features.
- Clear Instructions: Steps to send, receive, or request money should be clear and easy to follow.
- Help and Support: The app should provide accessible and helpful customer service for any questions or issues.
Security and Privacy
- Secure Transactions: The app should use encryption to secure your financial transactions.
- Privacy Protections: Be sure the app has robust privacy policies to protect your personal information.
- Two-Factor Authentication: This adds an extra layer of security to your account by requiring a second form of identification.
- Fraud Detection: The app should have systems in place to detect and prevent fraudulent activity.
Limitation Cost and Fees
- Transparent Fee Structure: The app should clearly outline its fees for various transactions, with no hidden costs.
- Reasonable Fees: Compare the fees of different apps to ensure they’re competitive.
- Transfer Limits: Check if the app’s transfer limits meet your needs. Some apps limit the amount you can send per transaction, daily, or monthly.
- Currency Exchange Rates: If you’re sending money internationally, be aware of the exchange rates offered by the app.
Which money transfer app has no fees?
Zelle doesn’t charge any fees for sending or receiving money, but your bank may. Keep in mind that you can’t send money with credit cards. Zelle is strictly for bank-account-to-bank account payments.
Is Zelle safer than Venmo?
While Zelle may appear more secure, other money transfer apps like Venmo and PayPal are just as secure. All of them use data encryption to protect users against unauthorized transactions and store users’ data on servers in secure locations.
Venmo also offers users the ability to set a PIN code for access to the mobile app.
What is the safest way to transfer money?
A wire transfer is a good way to send money quickly and securely, especially large amounts of money or overseas transfers. It’s safe for the sender as long as you know the recipient. And it’s safe for the recipient because the funds are guaranteed (unlike a personal check, which can bounce).
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