In today’s digital economy, mobile payment apps like Cash App and Venmo have become essential for businesses looking to accept payments quickly and efficiently. Both platforms offer features tailored to business transactions, but choosing the right one depends on various factors, including fees, transaction limits, security, and ease of use.

If you’re a small business owner, freelancer, or entrepreneur, this guide will help you understand the key differences between Cash App for Business and Venmo for Business, so you can decide which platform best suits your needs.

Cash App for Business: Features & Fees

Cash App provides a business account option that allows users to accept payments from customers. Here’s what you need to know:

Key Features:

• Accepts payments via Cash App balance, debit cards, credit cards, and bank accounts
• No need for a card reader—customers can pay by scanning your QR code
• Direct deposits to your linked bank account
• Bitcoin and stock investing features
• Cash App Boosts offer discounts and rewards for businesses and customers

Cash App for Business Fees:

• Transaction Fee: 2.75% per transaction for receiving payments as a business
• Instant Deposit Fee: 0.5% - 1.75% for instant transfers (free standard transfers take 1-3 business days)
• Credit Card Fee: 3% when customers pay via credit card
• ATM Withdrawal Fee: $2.50 per withdrawal (waived if you receive $300+ in direct deposits per month)

Cash App is ideal for businesses that need quick and easy payments without additional hardware, making it a great option for freelancers, small vendors, and service-based businesses.

Venmo for Business: Features & Fees

Venmo, owned by PayPal, is another popular payment app that allows businesses to accept payments from customers.

Key Features:

• Customers can pay using their Venmo balance, debit/credit cards, or linked bank account
• Businesses get a custom QR code for in-person payments
• Supports splitting payments among multiple users
• Offers social sharing, allowing customers to share their transactions, which can boost visibility
• Businesses can accept payments on websites and apps using Venmo Checkout

Venmo for Business Fees:

• Transaction Fee: 1.9% + $0.10 per transaction
• Instant Transfer Fee: 1.75% (minimum $0.25, maximum $25)
• Credit Card Fee: 3% for transactions funded by credit cards
• ATM Withdrawal Fee: $2.50 per withdrawal

Venmo is great for businesses that want a social and engaging payment experience, particularly those targeting younger audiences who are active Venmo users.

Cash App vs. Venmo for Business: Head-to-Head Comparison

Which One Is Better for Your Business?

• Choose Cash App for Business if:

  • You want a simple, fast payment system without the need for extra hardware
  • You don’t require a business website checkout option
  • You want to take advantage of Bitcoin and stock investing features
  • You prefer lower instant transfer fees compared to Venmo

• Choose Venmo for Business if:

  • You run an online store or app that needs Venmo Checkout integration
  • You want a social sharing feature that boosts customer engagement
  • You process a high volume of transactions and prefer lower per-transaction fees

Both platforms have their strengths, and the best choice depends on your business model and how you interact with customers.

Conclusion

When deciding between Cash App for Business and Venmo for Business, consider factors like transaction fees, payment flexibility, and customer experience. Cash App is excellent for quick and easy transactions, while Venmo provides additional benefits for businesses with e-commerce integrations and social engagement.

To get a better idea of how fees impact your business, you can use a Cash App fee calculator to estimate transaction costs before making a decision.