Going Digital: Top 5 Apps for Sending Money to Friends or Loved Ones (Free!) We’ve all been there, a supposed coffee date with friends became a day-long event. Before you know it, it’s past midnight and it’s time to go home. You scramble for your wallets to realize that only one of you has brought enough cash for the bill. No problem, just let that person pay the bill and we’ll split it later. A couple of days later and no one has brought up the supposed splitting of the bill, well, because it’s a hassle to meet up again.
Here comes the beauty of going digital… You don't have anymore excuse with the advent of applications making paying easy as one, two, three. In this age and time, it’s so easy to send money to friends or loved ones. It just takes various clicks and voila, debt paid or money sent! While there are a number of applications in both the Google Play Store and Apple Store with regards to sending money, the top five applications would be discussed in this guide.
So how did these apps made it to the list? In terms of security and ease of use, these are the top applications in the market. All of them are free for download as well. These are the main reasons why they made it to this list. Further, these are the most highly rated money sending applications in both platforms, used by the highest number of clients.
Top Five Apps For Sending Money to Friends or Loved Ones App Name
Year Founded (App)
Availability
Android
Apple
1. Venmo
2009
US Only
Yes
Yes
2. Square Cash
2013
US Only
Yes
Yes
3. PayPal
2015
Worldwide
Yes
Yes
4. Facebook Messenger
2017
Selected Countries
Yes
Yes
5. Google Wallet
2015
Selected Countries
Yes
Yes
Let’s go to their in-depth reviews… 1. Venmo What is it: You know that online money transfer giant that goes by the name of PayPal? Well, recently in 2009, they founded the peer-to-peer online transfer application called Venmo. This is a unique application in that it combines social media and sending money into one. It has a social feed where your transactions or your friends’ transactions can be seen, if you or they choose to make it public. How to use it: Venmo works pretty much like PayPal although on a mobile form. You can setup your account and then link your debit card, bank account or prepaid card. With these accounts, transferring money is free. But if you choose to link your credit
card, there’s a levied charge of 3% for every transaction. To send money, simply search for the friend you need to pay via email, number or username, put a description and hit on send. Its features: As mentioned above, Venmo has a Facebook-like interface where you can see transactions from. Like PayPal, your credits or account money is within the Venmo application. You can transfer it to your debit card or bank account manually. There’s a transfer limit of 299.99 USD per week for unverified accounts and 2,999.99 USD per week for verified accounts. Its cons: The social media aspect of the application can be too much for some people. It also poses some security risks since everyone in your network can learn about your spendings. The application also doesn't automatically log you out so make sure you have a pin code in your phone in case others get a hold of it. Further, Venmo only works in the US so if you need to transfer money outside of this country, you need to look for other options.
2. Square Cash What is it: Square started out as a software and hardware company. It was only in 2013 when they launched the Square Cash, their peer-to-peer online money transfer subfield. Its claim to fame is its ease of use and even those without a Square Cash account can receive money from you. For merchants or business holders, you can get the Square Cash premium account for smoother transactions, different fees apply. How to use it: Similar to Venmo, you can send money via the application by setting up an account. Search for the recipient by his name or email and send the money on the way. You can also send money by email if the recipient doesn't have his own Square Cash account. Its features: Square Cash has a no-frills interface, perfect for the older individuals. It has a unique feature though called the $Cashtag, which is your unique url for sending or receiving payments. You can setup your own $Cashtag within the app. With this feature, you can send payments or even receive payments anonymously. Its cons: With Square Cash, you won't have credits linked to your account. All money is transferred immediately to your debit card or credit card, which can be a pro or con to
some. The application also don’t have security features enabled unlike Venmo which has a pin-code identification system. So to protect your account, make sure you enable per transaction pin security with Square Cash. 3. PayPal What is it: PayPal is an undefeated hero when it comes to online money transferring. It was in 2015 when PayPal introduced its very own mobile application. Its edge among the others is that it is the only worldwide money transfer application in the market. You can choose from a variety of applications, depending on your needs, since PayPal has versions for personal transactions and business transactions. How to use it: You can setup an account with PayPal, if you do not have one yet, and link your bank account to it. You can also link your debit or credit card but keep in mind that there would be levied charges for transactions with such sources. Click on Send Money, input the name or email address of the recipient, enter the amount of money you want to send, add a note and click Send Now. Its features: No doubt that the main advantage of using PayPal is its global reach. You can send money to anyone in any place with just a few clicks. Additionally, there is no limit for the amount you can send or receive if you have a verified account. Each transaction’s limit is at 10,000 USD which is still quite plenty as compared to other applications. You can also use your account to buy merchandise or services online as credits are automatically added to your account. Its cons: PayPal does come with a few cons. For instance, linking your debit or credit card would incur high charges per transaction. Another downside is that manually moving your account credits to your bank account or debit card can take more than a few business days. Make sure you transfer the money before a Friday or else you won't be able to get it until Monday or Tuesday. 4. Facebook Messenger What is it: It’s rare to find someone nowadays who doesn't have a Facebook account. And it’s also rare to find services that aren’t in Facebook. In 2017, the world’s most popular social media platform delved into the online money transfer scene. Facebook joined hands with TransferWise, another peer-to-peer online money transfer company, and in-
troduced the sending money feature in its Facebook Messenger application. As of now, the service is only available in the US, UK, Canada, Europe and Australia. How to use it: To begin sending money using Facebook Messenger, click on your profile on the application. Then, attach a working debit card, this is the only allowed funding source as of now. Whenever you want to send money to a friend or loved one, open a chat with them, click on the three tiny dots on the bottom and then click on Payments. Click on Next, input the amount you want to send and attach a little not along the way. Done! Its features: Using Facebook Messenger to send money is a pretty straight-forward process. Of course, since it is within the Facebook application, you get a myriad of other features like chatting, photograph uploading and more. To make the transactions more secure, you can also add a pin in the application. Its cons: Sending payments through Facebook Messenger requires both parties to have a debit account. So if you don't have this funding source or receiving type, then you can't use this form of sending money. While the transaction is free of charge, it is only available in a few countries despite the fact that Facebook is a worldwide platform. 5. Google Wallet What is it: The application counterpart of Google Wallet was established in 2015. If you’re a fond user of Google Mail or simply called Gmail, you might find Google Wallet as a convenient alternative for money sending. The best part is that the receiving end doesn't have to have a Google Wallet to receive your payment, as long as he or she has a Gmail account. How to use it: After downloading the application, you can set it up by filling in the required date, including your zip code and four-digit pin code. Attach your bank account or debit card, credit card can also be attached but there are different fees for transactions for this, and you’re done. You can then send payments using the application, by knowing the email address of the recipient. Its features: Like PayPal, Google Wallet has the credits automatically added to your account. You can then use this credits to buy products or services online. Alternatively, you can transfer the credits to your bank account or debit card as well. Unfortunately,
the Google Wallet card was discontinued recently so it’s not possible anymore to use your credits in store. Its cons: The biggest downside of using Google Wallet is its not so friendly user interface. Unlike Venmo, Square Cash, PayPal and Facebook Messenger, it takes a bit more effort to understand the Google Wallet platform. Transferring money from your account to the bank or debit card can take longer as well, around three days at the most.
Summary of Guide For Top Five Apps For Sending Money App Name
Fees for Personal Use Transfer Speed
Transfer Limits Balance in Account
1. Venmo
Free (Debit Card/Bank 1 to 3 Days Account/Prepaid) or 3% Fee (Credit Card)
299.99 USD/ Week (Unverified Accounts) or 2,999.99 USD (Verified Accounts)
Yes
2. Square Cash
Free (Debit Card) or 3% Fee (Credit Card)
1 Day
250 USD/ Week (Unverified Accounts) or 2,500 USD (Verified Accounts
No
3. PayPal
Free (Bank Account/ PayPal Balance) or 2.9% + 0.30 USD (Debit/Credit Card)
2 to 3 Days
No Limits (Up Yes to 10,000 USD/ Transaction)
4. Facebook Messenger
Free (Debit Card)
3 to 5 Days
9,999 USD/ Month
No
5. Google Wallet
Free (Bank Account, Debit Card/Google Wallet Balance) or 2.9% (Credit Card)
3 Days
50,000 USD/5 Days
Yes
Which money sending app is the best for you? It depends on your needs really. If you’re residing in the US and just need a basic app for sending money, you can use either Square Cash or Facebook Messenger. If you want to send money internationally, PayPal is your best option for that. Google Wallet is perfect for US residents who are expert Gmail users. And finally, if you want that novelty of fun aspect with sending money, there’s Venmo. As you can see, whatever your needs are, you have a specific money sending application for that. Always remember though that online transactions can never be fully secure. So make the necessary precautions, setup your pin and make the process as secure as you possibly can. How about you guys, have you used any other money sending app before? Which one can you recommend best to our readers?