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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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. <\/p>\n\n\n\n
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.<\/p>\n\n\n\n
You might have heard people say, \u201cJust Venmo me\u201d or \u201cI\u2019ll Venmo that to you later.\u201d That is because Venmo is one of the most popular apps for fast, peer-to-peer payments. <\/p>\n\n\n\n
Venmo\u2019s 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. <\/p>\n\n\n\n
However, you\u2019ll 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.<\/p>\n\n\n\n
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\u2019s so easy to add a recipient, there is some risk of sending money to the wrong person. Venmo doesn\u2019t guarantee recovery for any mistaken transfers. <\/p>\n\n\n\n
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.<\/p>\n\n\n\n
Cash App stands out in the world of money transfer apps by serving as an alternative to a traditional bank account \u2014 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.<\/p>\n\n\n\n
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?<\/p>\n\n\n\n
Standard deposits are free and arrive within one to three business days. Instant deposits are subject to a 0.5%-1.75% fee \u2014 with a minimum fee of $0.25 \u2014 and arrive instantly on one\u2019s debit card. Cash App is available in the U.S. and U.K. only.<\/p>\n\n\n\n
Founded in 1998, PayPal is one of the oldest money transfer services on the market. Today, it\u2019s a multi-function financial platform that includes a digital wallet, currency conversions, its own credit card, and the ability to buy and sell cryptocurrency.<\/p>\n\n\n\n
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\u2019s also easy to use from its website or mobile app. You can send money to PayPal accounts in over 200 countries and regions.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
With PayPal\u2019s 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\u2019t need to make a separate account with Xoom \u2014 you can access it through your PayPal account to make an international transfer.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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\u2019ll pay will depend on:<\/p>\n\n\n\n
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\u2019re sending the money and how you pay for the transfer.<\/p>\n\n\n\n
Wise doesn\u2019t 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.<\/p>\n\n\n\n
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. <\/p>\n\n\n\n
The advent of the Western Union app has only added to this convenience, removing the necessity to visit physical locations to complete transactions.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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. <\/p>\n\n\n\n
And because it is built into your bank account, Zelle also lets you skip the step of funding or cashing out your app balance.<\/p>\n\n\n\n
Each financial institution sets its own limits for sending money with Zelle. For example, if you bank with Bank of America, you can\u2019t 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\u2019ll be limited to sending $500 per week.<\/p>\n\n\n\n
One downside to Zelle is its lack of protection for users. It offers no protection for authorized payments \u2014 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. <\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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\u2019re 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.<\/p>\n\n\n\n
However, it is an ideal service for international money transfers as it is typically faster than a bank wire transfer. <\/p>\n\n\n\n
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\u2019ll be able to pay for your transfer by debit card, credit card, or Apple Pay. But beware that bank transfers are not available.<\/p>\n\n\n\n
WorldRemit charges markups on its exchange rates between currencies \u2014 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:<\/p>\n\n\n\n
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\u2019re paying for it.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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. <\/p>\n\n\n\n
Venmo also offers users the ability to set a PIN code for access to the mobile app.<\/p>\n\n\n\n
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).<\/p>\n\n\n\n