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If you’re looking for a convenient way to send and receive electronic payments, you’re probably trying to decide whether you should use a Cash App or PayPal. With millions of users, they are among the most popular peer-to-peer (P2P) online payment platforms in the United States and the world. While both are easy to use, each has pros and cons. Rather than simply choosing one on a whim, it’s a good idea to explore both options thoroughly.
In this guide, we’ll provide you with an overview of both Cash App and PayPal, including features, ease of use, security and privacy, and rates. The information presented in this article will help you decide which option is better for you.
PayPal in a Nutshell
PayPal was founded back in 1998 as an online payment system designed for business and personal use. With this site, you can send and receive money, cash checks, and even donate to charities – all with the simple click of a button via their website or the tap of a screen through their mobile app. Users can link their PayPal account to personal or business checking accounts and/or credit cards.
After you create an account and your ID and proof of funds have been verified, you can start sending and receiving payments either online or in-store, with PayPal facilitating the exchange. Millions of online and brick-and-mortar businesses accept payments via PayPal. The online payment system also offers debit and credit cards that link to and draw funds from users’ PayPal accounts.
Cash App in a Nutshell
Cash App was founded in 2009 and like PayPal, it’s a peer-to-peer online payment platform that allows users to send and receive electronic payments via the internet. You can create an account for free and once your account is confirmed, you can start using the app to send and receive funds from other Cash App users.
To use the Cash App, you’ll need to download the app to your smartphone. You’ll then choose your username. Other Cash App users can search for you via your username, phone number, and email address linked to your account. You can use a debit card linked to an existing bank account to add funds to your Cash App account. You can also transfer money in your Cash App account to your bank account.
Features and Services
While Cash App and PayPal share some similar features and services, these P2P payment platforms are quite different in terms of payments and services.
Cash App users can transfer money to and from one another between the US and UK (the only two countries in the P2P payment platform is available) free of charge. On top of not charging fees, Cash App uses the actual mid-market exchange rate between US and UK transfers. PayPal users can send and receive payments in more than 100 countries around the world. However, the P2P payment platform charges exorbitant fees and has poor exchange rates.
On Cash App, you can make standard bank deposits free of charge, and you can receive instant deposits via a debit card. However, you will be charged a minimum of 25 cents, and a fee of .50 to 1.75 percent will be applied.
With PayPal, with the exception of currency exchange rates, there are no purchasing fees. Additionally, fees will not be charged when funds are sent domestically or for non-commercial reasons. A 2.90 percent fee applies for PayPal card payments and a fixed fee for the currency you receive. For international transactions, you’ll be charged a fee of 5 percent (no less than 99 cents and no more than $4.99), and additional currency exchange rates may apply.
Security
Security is a crucial feature when deciding which P2P payment platform to use. So which does security better: Cash App or PayPal?
Both payment platforms take security seriously. Cash App utilizes the exact fraud detection and encryption software as Block, the app’s parent company. Additionally, regardless of location or connection, Cash App services are always secure. Moreover, the payment platform is Level 1 PCI Data Security compliant.
PayPal uses two-factor authentication (2A) for all logins, and the site is equipped with a host of other security features, including email payment confirmation, fraud monitoring, and fraud detection technology. The platform further protects users with Transport Layer Security, so your data is always encrypted.
Ease of Use
Cash App and PayPal are simple, straightforward, and easy to use. Setting up a user account on both platforms is quick and straightforward. Once your account is set up and verified, you can use Cash App and PayPal to send and receive digital payments. The user interface for both sites is easy to use. You can easily find what you’re looking for, access the information you need, and send and withdraw funds from each platform.
Which Has Better Customer Support Between Cash App and PayPal?
Cash App offers several customer support options, including:
- In-app. Click on the “support” tab and start a chat with a customer support agent.
- Phone. Dial 1-800-969-1940 from 9 am to 7 pm EST Monday through Friday.
- Social media. Customer support can be reached on Facebook, Instagram, Twitter, Twitch, and Reddit.
PayPal also offers several customer support options:
- Website Help Center. The Help Center on the PayPal website provides answers to FAQs.
- Chatbot. Head to “Contact Customer Service” on the website and select “Message Us.”
- Community Help Forum. Other PayPal users offer helpful information for general, non-emergency issues and inquiries.
- Resolution Center. Report and resolve account or transaction issues.
- Phone. Dial 1-888-221-1161 from 6 am to 8 pm PST Monday through Friday and from 6 am to 6 pm PST Saturday and Sunday. PayPal users outside of the US can dial 1-402-935-2050.
Which P2P Platform Wins: Cash App or PayPal?
Cash App and PayPal are among the most popular and widely used online payment platforms. Both have advantages and disadvantages, meaning that one isn’t necessarily better than the other.
The option that will work best for you does depend on your overall needs, including how you intend to use the platform and where you’re located.
