Zelle vs. Venmo

Zelle is a free service, with zero fees attached. It is worth with your bank or credit union that there are no hidden fees on their end.

When moving money with Venmo, it is free for a next business day transfer service, with a 1% fee attached to instant transfers.

Venmo also facilitates credit card payments, with a 3% fee.

With an instant delivery service which is free of charge, Zelle's ability to move money is instantaneous.

Users sending large sums of money via Zelle have been known to experience delays related when security holds are employed to protect both parties. In these situations, the transfer might not be instant.

Venmo offers instant transfers, but they come with a 1% transaction fee. Free Venmo transfers typically take 1 - 3 business days.

Your bank will need to grant access to Zelle’s payment network. Zelle moves money straight into the recipient’s bank account within minutes. Notifications can be activated to receive alerts.

In terms of transparency, the company has been scrutinised for the terms of their “send money” service. Due to the quick and easy user journey, some customers have highlighted the inability to reverse funds in the event of sending money to the wrong person.

Venmo customers will be prompted to create a profile, linking their chosen "payment method." Credit cards are accepted as a form of payment but Venmo charges a 3% fee for sending money this way.

Unlike Zelle, when receiving money via Venmo the funds are not automatically deposited into your bank account. Instead, the money remains in the Venmo account unless you make a bank transfer.

You can transfer funds instantly but this incurs a 1% fee. If you opt for the free transfer it will take 1 - 3 days for the funds to reflect in your bank account.

You will need a smartphone to use Zelle. Compatible with nearly all major US banks, each institution displays Zelle’s features differently.

It is easy to use and can be found in banking apps, by selecting “Send Money with Zelle”. Users are then given the option to "send or receive".

First time users will be prompted to select from recent recipients as well as phone contacts. New contacts can be added using the email or phone number of the payee.

Venmo ensures user-friendly and fun navigation. When selecting “Pay or Request” users are able to scroll through a list of their contacts who are also connected to the service.

Presented like a social media feed, Venmo users can see who others are making payments to. There is also the option to add GIFs, emojis and messages when sending and receiving money.

It is easy to search for a contact: simply type the name or Venmo username, phone number or email of who you want to pay or request money from.

Security is provided by authentication and fraud monitoring which are displayed as verification screens during the “send money” process.

Zelle, however, does not take responsibility for resolving any payment disputes users may experience. In the security section of their terms and conditions, Zelle states: “It's important that you know and trust those you send money to. Because once you authorize a payment to be sent, you can't cancel it if the recipient is already enrolled in Zelle.”

If the recipient has not enrolled with Zelle and does not claim the money within 14 days, it is returned to the sender.

For this reason, however, Zelle is not in the same league as Venmo and other mobile apps, in terms of secure bank-level data encryption.

With Venmo, the safety and security of customers’ money is paramount. Advanced data encryption is employed across the application to ensure the protection of all financial information.

On their website, Venmo declares: “We use encryption to help protect your account information and monitor your account activity to help identify unauthorized transactions.”

There is the option to enhance the security of your account by adding a PIN code and enabling two-step multi factor authentication in the app.

Users are further protected by a $3,000 daily spending limit.

Customer praise online refers to:

• Zelle being convenient and a great way to send remittances to friends and family across the US

• Zelle is easy to use and simple to set up for anyone banking with major US companies

• The handy option to activate auto payments for contacts you regularly send money to

On Trustpilot, 95% of Zelle reviews are criticisms of the company which include:

• Security breaches when sending money to unfamiliar contacts

• Sending money to the wrong person by mistake and being unable to reverse transactions between enrolled accounts

• Poor communication skills from customer service representatives

• Unsafe to use due to there being no way for Zelle or the bank to recover the funds

Venmo customers cite the following pros:

• It is easy to “pay or request” money from your contacts list, with useful message feature to reference the transaction

• Preferred way of splitting costs with friends or colleagues

• Quick delivery speed

Concerns from customers relate to:

• Privacy concerns related to the public nature of Venmo’s social feed

• Like Zelle, there is no option to cancel a payment once it has been sent and this is another frequently flagged criticism

• Slow email response rate from customer service