"Can I just Venmo you?" has become the new "I'll get you next time." Splitting dinner, chipping in for a group gift, paying the dog walker: it's all happening on our phones now.
The apps aren't interchangeable, though. Here's which one to use when.
The quick version
- Zelle for sending money to people you know and trust, straight from your bank account.
- Venmo for splitting things with friends, especially anyone under 35, who probably already has it.
- PayPal for buying things online and paying someone you don't know well.
Zelle
Zelle is built right into most U.S. banking apps. Look for "Send money with Zelle" in yours. The money goes directly from your bank account to theirs, usually within minutes, and it's free.
But once it's sent, it's gone. There's no buyer protection, so if you pay for concert tickets that never arrive, you're probably out of luck. Zelle is for your sister, your neighbor, and your kid's babysitter, not for strangers on Facebook Marketplace.
Venmo
Venmo is a separate app, owned by PayPal, and it's the go-to for splitting things with friends. You can link a bank account or card, request money from people, and split bills right in the app.
Two things to know:
- Your payments are public by default. Anyone can see who you paid and the little note you wrote. I'd make yours private:
Venmo › Me › Settings › Privacy › Private
While you're there, check "Past Transactions" so you can hide the old ones too. - Buying something from someone? Mark the payment as Goods & Services. It costs the seller a small fee, but it gives you purchase protection if something goes wrong. A regular "friends" payment doesn't.
PayPal
PayPal is everywhere online, and it's often the safest way to pay a small business or an individual seller you don't know. Use the Goods and Services option when you buy, and PayPal's buyer protection can help you get your money back if the item never shows up or isn't as described.
If a seller asks you to use "Friends and Family" instead to "save on fees," that's a red flag. They're asking you to give up your protection.
A few rules
- Only send money to people you know in real life, unless you're using a payment option with buyer protection.
- Double-check before you hit send. Confirm the phone number, email, or username, and for a new contact, send $1 first and ask them to confirm.
- Never "refund" an accidental payment from a stranger. It's a common scam: the original payment came from a stolen card and will bounce, and your "refund" won't. Contact the app's support instead.
- Your bank and these apps will never ask you to send money to yourself or to "a safe account." Anyone who does is a scammer. (More on that in how to spot a scam text.)
- Turn on Face ID or a PIN for each payment app, so someone holding your unlocked phone can't empty your account.