In recent years, digitalization transformed the payment system drastically. Now sending or receiving money is just one click away after installing digital wallets. With myriad options in the market, Cash App and Paypal are often the top choices among users worldwide. You can shop, invest, and play on gambling sites via these advanced applications. However, this leaves a significant question in everyone’s mind is PayPal or Cash App better?
If you’re looking for the same answer, stay tuned. From who owns Cash App and PayPal App to which one is better, this comparison guide will disclose all.
Cash App
Cash App is a peer-to-peer (P2P) payment app launched by Block, Inc. in 2013. You can use this free-to-download app to receive, send, and invest money. Formerly known as Square Cash, the e-wallet is today a crowd’s favorite with 4.7 stars user rating on the Apple Store and 4.6 stars user rating on Google Play Store.
The minimum age to use the Cash app is 13 years. However, parent or guardian approval is necessary for users between 13 to 18 of age for expanded features, including direct deposit, P2P transactions, and a Cash Card.
Paypal
PayPal revolutionized the electronic transaction system after eBay acquired it for $1.5 billion in October 2002. Further, it became an independent company in 2015. Today, PayPal has 392 million active users sprawling across 200 countries.
After linking your bank account, credit, or debit card, you can quickly send and receive money from anybody through this highly secure app.
Now let’s understand which app is more suitable for online payments by comparing the key Cash App and PayPal features.
1. Location Coverage
First, let’s check out the regions covered by both online payment systems.
| Cash App | PayPal |
| Currently, Cash App has only a US and UK-centric customer base.
| PayPal is already serving users from over 200 countries.
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Bottom Line:
Undoubtedly, PayPal surpasses Cash App with its widespread availability.
2. Available Transaction Modes
Another major parameter to check is the modes of payment you can use.
| Cash App | PayPal |
| For user convenience, Cash App offers a wide range of payment methods. It includes GPay, Apple Pay, Cash App Balance, bank account, Credit card, or Debit card.
Besides, many famous betting sites allow Cash App as a payment method for gambling. So no need to think does Cash App support online gambling?
| For transactions on PayPal, you can use Bank transfer, PayPal balance, Credit card, or Debit card as payment modes.
Transactions via PayPal are also valid on various gambling sites.
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Bottom Line:
Cash App supports more transaction modes than PayPal. So go with Cash App if you’re looking for more convenient options.
3. Transferring Fees
Between Cash App and Paypal, who charges more fees? Let’s find out.
| Cash App | PayPal |
| Is there a fee to use Cash App? Many transactions on Cash App are free of charge except for a few, which are as follows: ● A fee of 1.5% levied on the Cash Out option ● A 3% of the transfer amount charged on the credit card payment method
| You don’t need to pay a fee for transferring funds to family or friends via a PayPal balance or linked bank account.
But there’s a fee for credit card transfer and currency conversion. So, the company’s fee structure varies based on the service you choose and your country of origin. It is as follows: ● A fee of 2.9% + $0.30 when a user chooses domestic credit or debit card payment modes ● A 2% fee levied on cross-border transfers, like USA and Canada ● A 0.5% fee during cross-border transfer to some European countries ● A 5% fee for international transfers
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Bottom Line:
Cash App is a clear winner. So why you shouldn’t use Cash App when its transferring fee is more reasonable than PayPal?
4. Exchange Rates
Here’s an overview of the exchange rate policy on these digital payment gateways.
| Cash App | PayPal |
| The company ensures to apply conversion rates based on the current mid-market exchange rate. Customers can request money from offshore contacts residing in US and UK using Cash App.
| Like banks, PayPal has a high exchange rate for international currency conversions, varying from 3 to 5% mark-up. Besides, a customer can only know the transfer’s total cost at the final stage.
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Bottom Line:
What are the disadvantages of Cash App? International transfers are valid only in USD and GBP. But if you’re looking for a lesser exchange rate, don’t look beyond Cash App.
5. Money Transfer Speed
Online payments are all about speed. So check out who is faster.
| Cash App | PayPal |
| Generally, a free funds transaction service at Cash App takes about 1 to 3 business days.
However, you can avail of an instant transfer option at a 1.5% fee.
| The transferring speed depends on the method you choose on PayPal online payment system. The transaction using the same currency between two PayPal accounts is the fastest option. Besides, International transfers take 1 business day.
But it can take 3 to 5 business days when you withdraw and convert funds from a linked bank account. Hence, it is the slowest method.
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Bottom Line:
It’s a tie.
6. Security Protocols
Security is the biggest concern when using online transaction systems. Here’s an outline of Cash App vs PayPal security protocols.
| Cash App | PayPal |
| Firstly, Cash App uses various verification features during the transaction process, including Touch ID, Face ID, and PIN entry.
Further, the company ensures using high-end fraud detection and PCI-DSS level 1 encryption technology to eliminate the risk of data theft. Thus, no unauthorized person can access and misuse your personal information.
However, no Federal Deposit Insurance Corp (FDIC) coverage limits the banking features on Cash App.
| Similarly, the advanced encryption technology used at PayPal protects every user’s data.
You can also set Touch ID, PIN codes, and security questions on the app for improved safety.
But users have a few account restriction complaints during their log-in attempts.
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Bottom Line:
So is Cash App safe like PayPal? Yes. It means both equally ticked the security parameters.
7. User Interface
A user interface can make or break any online platform.
| Cash App | PayPal |
| A simple design and navigation system make Cash App an easy-to-use website for any user. Its app version also has an impressive interface with easily accessible buttons.
| PayPal has a quick, secure, and straightforward user interface. It also works smoothly on both iOS and Android devices. The app can even access your phone contacts to initiate instant transactions.
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Bottom Line:
Even novices can use Cash App hassle-free due to no complicated design and clear setup.
8. Extra Perks & Features
Have a look at additional perks to enhance your payment experience online.
| Cash App | PayPal |
| ● One of the best cash app features is that it allows US users Bitcoin and stock investment. Moreover, you can start as low as $1 without commission fees. ● Fee-free ATM withdrawals on receiving or spending a minimum $300 amount. ● Get free, easy-to-use customizable debit cards. ● Wondering what games pay real money on Cash App, and does Cash casino pay real money? You can play various real-money casino games through Cash App, such as Blackout Bingo, Mistplay, Solitaire Cube, Swagbucks, etc. ● Its Cash Boosts scheme offers users discount coupons for various restaurants and coffee shops. | ● PayPal QR Code feature allows you to scan and pay instantly on merchant outlets. ● Get a free Mastercard-approved PayPal Cash Card that you can use for offline and online shopping. ● Available as a payment option on several online casinos. ● Earn in-store reward schemes when you pay via PayPal.
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Bottom Line:
Both have incredible features.
Final Words
So Cash App is your one-stop solution if you’re looking for a digital wallet with a low transfer fee and exchange rate or crypto investment. If you’re thinking, does Cash App allow gambling? The answer is yes. Thus, it is one of the best finance apps available in the market that can suffice your various banking needs.
Undoubtedly, PayPal and Cash App have their pros and cons. Yet both the digital payment apps allow users to initiate transactions conveniently from smartphones and browsers alike. Ultimately, the selection depends on your personal choices.
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