Zelle and Venmo are peer-to-peer payment platforms that can be used by businesses as an additional way to accept payments. While both Zelle and Venmo offer seamless solutions for transferring funds, they cater to distinct needs and preferences.
- Zelle: Best for accepting payments from Zelle-enrolled bank accounts
- Venmo: Best for accepting payments from Venmo users
Zelle is great for simple, cost-effective, and quick bank transfers, while Venmo is known for its social engagement and integrations. Both Zelle and Venmo do not have monthly fees so offering both to your customers is also a suitable solution.
What Is Zelle?
Zelle is a direct money transfer service that allows money to be transferred instantly between Zelle-enrolled US bank accounts. To use Zelle for business, merchants need to enroll their bank account in Zelle using their bank’s mobile banking application. Businesses only need to provide customers with their Zelle business mobile number or email address to start accepting payments. There are more than 1,600 Zelle partner banks and credit unions.
What Is Venmo?
Venmo, a mobile and social payment platform owned by PayPal, was originally popular among friends for splitting bills and sharing expenses. Customers can send payments to merchants using their Venmo app or merchants with online stores may use a Pay with Venmo button on their checkout page. Learn more in our guide on Venmo Business account.
Zelle vs Venmo Quick Comparison
 |  | |
|---|---|---|
Monthly Fee | $0 | $0 |
Transaction Fee | $0 | In app: 1.9% + 10 cents Online checkout: 3.49% + 49 cents Tap to pay: 2.29% + 9 cents (coming soon) |
Ecommerce Integration | Third-party only | ✓ |
QR Code Payments | ✓ | ✓ |
Deposit Speed | Free: instant to bank | Free: instant to Venmo Free: 1-3 days to bank 1.75% Fee: instant to bank |
Business Management Tools | ✕ | Tax reporting Tipping Social selling |
Customer Support | Phone support: Mon–Sun, 10 a.m.–10 p.m., Eastern time Email, contact form, help center | Chat support: Mon–Sun, 8 a.m.–10 p.m., Central time Phone support: Mon–Sun, 8 a.m.–8 p.m., CT Email, contact form, help center |
When to Use |
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Pros
- No transaction fees
- Instant direct-to-bank transactions
- Simple and easy to use
- Widely available among US banks
Cons
- Available in the US only
- Requires Zelle enrollment of both merchant and customer bank accounts
- No refund process
- Limited payment methods
Pros
- Easy ecommerce integrations
- App has a social media-style interface that works as a marketing tool
- Offers a debit card that provides instant access to the Venmo balance
- Allows customers to add tips
Cons
- Limited payment types
- Only available to Venmo users
- Fee for instant transfer to bank account
- For US merchants only
When to Use an Alternative
While Venmo and Zelle are convenient additional payment solutions for many businesses, they come with certain limitations that make them unsuitable for specific situations. Here are some scenarios where both Zelle and Venmo are not the best choices for accepting payments and you should consider other methods.
- International payments: Zelle and Venmo only cater to domestic transactions within the US. If your business frequently deals with international customers or suppliers, you cannot use these platforms for currency conversions and cross-border transactions. Instead, consider using platforms like PayPal, Stripe, or other providers in our list of the best international merchant account providers.
- In-person transactions: Both Zelle and Venmo are designed for peer-to-peer payments and do not offer a point-of-sale (POS) system. If you also want your business to accept credit card payments in-person or in-store, it is best to go with all-in-one providers like Square, Helcim, or other options in our list of the leading merchant services.
- Ecommerce and online checkouts: Although Venmo offers some ecommerce integration, its online credit card processing fees are higher than other providers. If you sell your products through your own ecommerce website, it is better to go with Stripe, Shopify, or other processors in our roundup of top-recommended online credit card processors.
Zelle vs Venmo Fees
Both Zelle and Venmo are cost-effective for standard transactions, making them attractive choices for businesses looking to save on payment processing fees. However, Zelle is a better option if the funding source is the customer’s bank account and the bank does not charge any fees for Zelle transactions. This is in contrast to Venmo Business accounts that incur processing fees for payments received.
For businesses that need faster access to funds, Venmo offers an instant transfer-to-bank option at a cost, while Zelle and most banks do not charge any fees.
Zelle vs Venmo Features
Zelle and Venmo have limited features compared to other payment service providers. However, Venmo has a slight edge over Zelle because it offers more payment options and integrations. When it comes to security, both Zelle and Venmo practice strict security measures, encrypt transactions and information, and adhere to industry security standards.
Payment Methods
While Zelle is strictly for bank-to-bank transfers, Venmo allows customers to pay using their Venmo balance or by funding it with their bank account or credit card. Venmo will further edge out Zelle when it launches Tap to Pay on Android and iPhone, because it will allow Venmo Business accounts to accept contactless card payments without any additional hardware.
Security
Both Venmo and Zelle are considered highly secure platforms. Venmo, a PayPal-owned company, benefits from PayPal’s extensive experience in online payment security. PayPal is one of the largest and most trusted online payment platforms globally, known for its stringent security measures.
Zelle, on the other hand, has bank-level security and adheres to each bank’s strict security protocols because it is an included tool within the app of Zelle-participating banks and credit unions.
Integrations
Zelle has very limited integrations, even from third-party providers. It is designed to be used for direct account-to-account transfers using a banking app, and not for online checkouts.
When it comes to online checkouts, Venmo wins over Zelle. Most ecommerce platforms that allow PayPal integrations also have a Venmo checkout button.
Deposit Speed
Zelle wins over Venmo when it comes to deposit speed. Payments made using Zelle are instant–merchants see the payment reflected in their bank account just seconds or minutes after it is sent. For Venmo, although payments are also received instantly, the funds sit in your Venmo account until you request a payout to your bank account, which takes around one to three days. Venmo offers an instant transfer option but it comes with a fee.
Customer Support
Both Zelle and Venmo maintain regular customer support hours. Anything outside of the phone support hours may be addressed via email or by filling up and submitting their online form. Venmo also provides an option to contact customer support within the app, while Zelle help may also be provided by the bank or credit union.
Zelle vs Venmo Expert Take
Both Zelle and Venmo offer convenient solutions for businesses, but the choice depends on your specific priorities. Zelle excels in its simplicity, cost-effectiveness, and rapid transfer speeds, making it ideal for businesses with Zelle-enrolled bank accounts.
On the other hand, Venmo’s strengths lie in its integration options and social marketing features, making it a suitable choice for businesses aiming to engage with customers on a more personal level. To make an informed decision, carefully evaluate your business needs and preferences in terms of transaction fees, payment methods, and security, and choose the platform that aligns best with your goals.
The good thing is if your business has a Zelle-enrolled bank account and a Venmo Business account, there is no reason not to offer both to your customers. Zelle and Venmo both have no monthly fees so there is no additional cost to offering it to your customers. Having both will add payment flexibility to your business.
User Reviews
User reviews for both Zelle and Venmo generally reflect positive experiences, with high ratings on the App Store. Users appreciate the convenience, speed, and ease of use offered by both platforms. However, both apps have their share of challenges, with occasional compatibility issues, settings problems, and crashes reported in the case of Zelle, and bugs and account creation difficulties with Venmo. Let’s take a closer look at what users have to say about these two popular payment apps:
What Users Like
- Easy to use
- Quick transfer
- Convenience
What Users Don’t Like
- Incompatibility with some phone models
- App settings issues
- Crashes
What Users Like
- Good app
- No ads
- Intuitive
What Users Don’t Like
- Can be buggy
- Difficulty in creating an account
- Account freezes
Frequently Asked Question (FAQs)
Click through the sections below to learn more about the most common questions we get about Venmo vs Zelle.
For business use, Zelle is ideal for quick and fee-free bank transfers, particularly if most of your customers have Zelle-enrolled bank accounts. Venmo, on the other hand, is better suited for businesses aiming to engage with customers through social payment features and online integrations. The choice depends on your business needs and customers.
Yes, it is possible to use both Zelle and Venmo for your business to provide customers with multiple payment options.
Zelle and Venmo are generally safe to use, with both platforms implementing security measures to protect users and their financial transactions. Zelle adheres to bank-level security standards, and Venmo, as a subsidiary of PayPal, benefits from PayPal’s extensive experience in online payment security.
Both platforms encrypt transactions, employ user authentication, and monitor accounts for unusual activity. However, users should also take precautions, such as setting strong passwords and enabling two-factor authentication, to enhance the security of their accounts.
Bottom Line
Zelle and Venmo both offer convenient and cost-effective solutions for businesses and individuals looking to send and receive money. Zelle stands out for its quick and zero-fee bank transfers, making it an excellent choice for businesses with Zelle-enrolled bank accounts. Venmo excels in its social payment features and online integrations, making it a valuable tool for businesses aiming to engage customers on a more personal level.
The choice between Zelle and Venmo ultimately depends on your specific payment processing needs, customer preferences, and business goals. With no monthly fees for either platform, some businesses may even choose to offer both to provide payment flexibility to their customers.
