Both Zeller and Venmo are two systems to easily send and receive money via mobile devices. However, there may be some significant differences. One important question is security: we analyzed whether Zeller or Venmo is more secure.
Whenever we choose an application for payment or gifts between people, it is very important to understand how they work and their main features. Therefore, in addition to analyzing security, we also review the main features of both applications.
Comparison chart
| Zelle | Venmo | |
| Registration required | Yes | Yes |
| Send and recive money P2P | Yes | Yes |
| Credit card supported | No | Yes |
| It can be used for purchases | No | Yes |
| It can be used outside U,S. | No | No |
| Can hold balance | No | Yes |
| Has fees | Depends | Depends |
| FDIC insurance | Yes | No |
Zelle
The Zelle app was launched in 2017. It is a service that is added to the digital banking of partner financial institutions.
Through this application, it is possible to send or receive money from other individuals. The operation is simple, and only the beneficiaries’ email addresses or cell phone numbers are needed.
The operation is based on registering in the application. We can do that through the downloaded application, the web platform, or your bank’s electronic banking provided if it is associated with the service.
When the bank is associated with this service, a profile is created for the application, and you can operate from your digital banking.
Transactions are very fast. When both parties are associated with a bank (it does not have to be the same bank), it is a matter of minutes. However, if one of the parties is not registered in the application, it will require registration and can delay access to the money for up to three business days.
This application is free of charge, although in some cases, a fee may apply depending on the chosen bank.
Security at Zelle
Zelle has different layers of security. First, it has further authentication and monitoring systems to ensure secure payments.
On the other hand, when using the digital banking of the partner banks, you can also include the fact that they are FDIC insured within the security tools. Of course, the extra layer of security that the banks give to their e-banking should also be considered an added advantage.
This application does not require sharing personal or financial information with the recipient regarding data security. However, the recommendation is to use the service only with people you trust: therefore, do not use this service to make purchases from strangers.
Venmo
Venmo is a service for sending and receiving money via email or cell phone. It is a payment tool owned by PayPal.
In the same way, we saw in the previous application, sending or receiving money between individuals will also be possible. But, in this case, with other added elements.
The first of these is that Venmo allows you to maintain a balance. As it is not associated with a bank account, it has a credit that can be recharged through different payment methods. That does not mean making a direct payment with an associated mode (for example, a debit card) is impossible.
Another difference is that this application maintains some social networking capability. It facilitates sharing the timeline and the activities and purchases of friends who choose to provide this information.
There is no cost for sending money or using the balance of associated accounts or debit cards. However, you will have to pay a 3% fee for sending money using a credit card. There is no charge for receiving money.
Safety in Venmo
As with this platform, the recommendation is not to use them with unknown people. Mainly that is because you cannot cancel a transaction once it has been made. Imagine that you have made a mistake or made a payment for a fraudulent action or purchase; you will not be able to access the money unless the receiver returns it.
From the point of view of transactions, it has all the cryptographic tools to protect payments. In this sense, the fact of PayPal’s support is a guarantee since it is a payment gateway with years of experience and high levels of security.
From the point of view of legal protection, you should not forget that the FDIC does not insure this platform. However, unless you maintain large balances in your account, it should not be a concern due to its characteristics and use since it is mostly intended for eventual payments.