Cash App vs PayPal: Which is better?

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Cash App and PayPal have become extremely popular since their debut. Cash App has 44 million users in 2021 and PayPal has 429 million users at the end of the first quarter of 2022. Consumers are increasingly looking for the best payment app on the market, but what is the best in the market? together ?

Cash App vs PayPal Feature Contrast

Despite some overlap, Cash App and PayPal differ in notable features of payments, stocks and cryptos, customer service, and fees.

However, the main differences are that PayPal has a wider international availability, while Cash App limits its services to the US and UK Cash App Investing does not charge a fee for trading, but PayPal has a fee schedule. detailed for buying and selling cryptocurrency.

Payments

cash app

Cash App users make instant payments for free. A simple entry of the recipient’s email, phone number or “$cashtag” allows the funds to arrive in minutes. Cash App users can also make contactless payments with stores that use Square by scanning a QR code.

US users can request or make payments with UK account holders with no application fees. However, users should expect the prevailing mid-market exchange rate at the time of payment to be applied.

PayPal

PayPal users can send and receive money quickly and securely with no app fees for US transactions. However, users can expect to see card charges when paying through a debit, credit, PayPal credit, or US charge card transaction.

PayPal uses Xoom for international money exchange, allowing account holders to make payments in over 100 countries.

Stocks and Cryptos

cash app

Cash App customers can invest in crypto and stocks, where trades can start with as little as $1 with split purchases, and users can set up automatic purchases.

Cash App provides regular news, statistics and graphical data so users can make informed investment decisions. While some apps only allow orders to buy and sell digital assets, Cash App users can transfer cryptos to and from separate digital wallets.

PayPal

PayPal account holders can buy, sell, or transfer certain cryptos, such as Bitcoin and Ethereum. Currently, only select US users have capabilities to transfer crypto to another PayPal account or external wallet, but PayPal is working to increase transfer eligibility in the future.

Customer service

cash app

Cash App has a handful of channels for customer support:

  • In the app: Select a profile icon, click “support” and start a chat.
  • Call: Available by calling 1-800-969-1940 Monday-Friday 9am-7pm EST
  • US Mail: Cash App, 1455 Market Street Suite 600, San Francisco, CA 94103
  • social media platforms: Active on Instagram, Twitter, TikTok, Facebook, Reddit and Twitch

PayPal

PayPal allows users to find the help they are looking for in several ways:

  • Help Center: Find answers to common questions through the PayPal website.
  • Chatbot: Log in to an account, navigate to “Contact Customer Service” and click “Send Us a Message” to start a chat via PayPal Assistant.
  • PayPal Community Help Forum: Members can help others with basic, non-immediate questions and issues.
  • Resolution Center: Log in to an account to report and resolve transaction or account issues.
  • Call: Available at 1-888-221-1161, 6 a.m. to 6 p.m. PST Monday through Saturday
    • PayPal CREDIT: 1-844-373-4961, Monday-Friday 5am-8pm PST and Saturday-Sunday 6am-6pm PST
    • Account holders outside the United States can call 1-402-935-2050.

Costs

cash app

Users can make free standard bank deposits from Cash App, but the transfer may take between one and three business days to complete. Debit cards are eligible for instant deposits at a minimum of $0.25 with 0.50% to 1.75% fees applied.

Investment services do not involve any fees when opening an account. There is also no minimum balance requirement and trading is commission-free.

Cash App cards can be used at any ATM with fees between $2.00 and $2.50. However, those who have received at least $300 in qualifying direct deposits may receive reimbursement of three ATM withdrawal fees every 31 days, up to a maximum of $7.00. Any further withdrawals within those 31 days will incur a $2.00 fee.

PayPal

There are no purchase fees with PayPal, except in the case of exchange rates. Although PayPal users do not see fees when holding crypto in accounts, other fees apply when buying and selling crypto orders. Users can check PayPal’s website for more information on international transaction fees.

There are no fees for sending domestic, non-commercial money from a PayPal account, bank account, or when using American Express Send™ for personal transactions. If account holders use a card to make payments, a 2.90% fee will apply as well as a fixed commission depending on the currency received.

International personal transactions from PayPal balance, bank accounts, credit cards and American Express Send™ incur a 5.00% fee, not less than $0.99 and not more than 4 $.99. Additional exchange fees also apply, depending on the type of transaction.

There are no fees when withdrawing to local bank accounts, but instant withdrawals come with a fee of 1.75% of the amount transferred, which also applies to card withdrawals. The minimum charge is $0.25 and the maximum charge is $25.00.

Security

cash app

Cash App uses the same encryption and fraud detection software used by its parent company, Block, formerly known as Square. Servers are secure regardless of location or internet connection, and Cash App is PCI Data Security Level 1 compliant.

PayPal

PayPal uses two-factor authentication for logins, which includes the user’s password and a one-time PIN for each login. Security features involve fraud monitoring, detection technology and email payment confirmation. Finally, PayPal uses Transport Layer Security to protect users, no matter where they are or what connection they use, by encrypting all data.

PayPal has buyer and seller protection policies in place, helping to minimize chargebacks and protect sales for sellers as well as protect buyers in the event of purchase disputes. The platform offers a range of resources for users to learn about scams, security and fraud.

Final grip

Cash App and PayPal are useful financial payment technologies with unique advantages. PayPal shows a more complete experience, making it the best option for most people. However, those looking for instant payouts and investing may find Cash App more suitable.

FAQs

Here are answers to common questions when comparing Cash App and PayPal services.

  • Is Cash App safe like PayPal?
    • Like PayPal, Cash App encrypts data and uses fraud detection software to protect its customers. Despite this, Cash App fell victim to an attack that hacked the data of millions of customers using its investment features in December 2021. Luckily, Cash App employed a forensics firm to investigate and remedy the situation.
  • What are the disadvantages of Cash App?
    • The main drawback is that users incur ATM fees when using the Cash App debit and credit cards.
  • Can Cash App be trusted?
    • Yes. Cash App operates under Block, which places the utmost importance on security and consumer protection for its users. But, even with these measures in place, users should be wary of scams and attempted security breaches.
  • Does the Cash app belong to PayPal?
    • No. Cash App is not owned by PayPal. Cash App is owned by Block, formerly known as Square.

Information is accurate as of August 1, 2022.

Our in-house research team and on-site financial experts work together to create accurate, unbiased and up-to-date content. We check every stat, quote and fact using trusted primary resources to ensure that the information we provide is correct. You can read more about GOBankingRates processes and standards in our Editorial Policy.

About the Author

David is a qualified financial adviser in the Republic of Ireland. He holds a bachelor’s degree in business and entrepreneurship, as well as more than five years of investment experience.

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