Cash App Vs. PayPal: Differences, Details, & Comparison! (2021)

Gone are the days when the movement of funds was a hassle. Except for a bank transfer, there was no authentic channel to make this movement convenient and fast. But today, it is a whole new world. With the advancement in technology, everything has become so approachable.

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When it comes to transferring and receiving funds, there are plenty of mediums available. Two very popular channels are Cash App and PayPal. Both Cash App and PayPal have their pros and cons. It’s hard to decide which one is better than the other until the complete picture shows up.


What Is Cash App?

Cash App is a mobile-based payment service that allows users to receive and transfer funds through the Cash App mobile application. It was developed almost 12 years back in 2009. Square Inc took the initiative to create a channel to support an easy movement of funds between different users.


How Does Cash App Work?

First, users download the app. A sign-up process through an email address or phone number follows this. After a few confirmations, the app asks for a debit card number and an appropriate Cashtag name. The Cashtag name is the user’s identity on the app. This name is what other users use to accept and transfer funds.

Interestingly, Cash App also can link the user’s bank account to the Cash App profile. While transferring or receiving, the holder of the bank account puts the fund amount. This is then followed by putting in the Cash App information such as Cashtag name or email address to end the process.


What Makes Cash App Wonderful?

  • Cash App’s clean and straightforward design is its biggest benefit. All the features are easily understandable. Besides, there are no hidden fees involved in receiving or accepting funds. Everything is crystal clear to prevent any unnecessary misconceptions.
  • The instant money transfer is Cash App’s biggest benefit. It takes about just three days to transfer money in the user’s bank account, and Cash App charges 1.5% on this money transfer option.
  • Cash App’s debit card facility is a great source of comfort. The user can purchase anything directly through the Cash App debit card. This feature gives the much-needed versatility to use the received money instantly.
  • Besides the above feature, Cash App has a unique referral program. Anyone who registers with this program is paid for getting someone else to sign up. The new Cash App member also gets paid.
  • Through a Cash App account, any user can buy Bitcoin or invest in stocks and shares. Cash App gives its users the facility to buy Bitcoin through this channel. The same facility is available for investment in stocks and shares. The amount invested immediately starts showing on the Cash App debit account.

What Makes Cash App Weak?

  • There are no fees involved with a Cash App debit card. But when it comes to funding movement through a credit card, the story is different. Cash App charges a 3% fee on money sent through a credit card. This is quite a big amount.
  • Cash App also lacks a very important feature. No user can put cash directly into the card. The user is made to add the money to the card through the bank account. This is a very unattractive feature for a facility called ‘Cash App.’
  • This one is the biggest drawback. Cash App isn’t a medium for the international movement of funds. It is only available for people in the USA and the U.K, and only they can transfer funds between each other.

What Is PayPal?

PayPal is a much older app than Cash App. PayPal is a U.S.-based company and was founded in the year 1998. Unlike Cash App, PayPal has an app and a website available for the safe transfer of funds.


How Does PayPal work?

Since PayPal is approachable through both a website and mobile app, the user must first sign up on either platform. Once the sign-up process finishes, PayPal asks for a relevant debit card, credit card, or bank account number. To send or receive money, the user just puts in the other person’s details with the amount and clicks send or request, respectively. PayPal doesn’t involve any extra hassle or unneeded formalities to work. Just the basic information, and that’s it!

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What Makes PayPal Great?

  • It is a very easy medium to use. They are no complicated features involved. Even a person with basic knowledge can utilize this platform.
  • There is no fee involved during the movement of funds, provided it is between friends and family.
  • Like Cash App, with PayPal, it takes a maximum of only three days to receive funds in a bank account. PayPal charges 1% on instant pay option while Cash App charges 1.5%
  • PayPal is famous for its data security. It has an encrypted system that prevents any data leakage.
  • Unlike Cash App, PayPal has the facility to receive and transfer funds anywhere internationally. More than 200 countries use PayPal as the most-trusted medium to transfer funds.

What Makes PayPal Weak?

  • Some bank accounts charge an extra fee on the amount received through a PayPal account. This point discourages many users.
  • PayPal charges an amount for business transactions. It charges 2.9% on the money received for services or goods. For international business transactions, PayPal charges a fixed fee and an additional 4.4% on the transaction amount.

Cash App vs. PayPal – Who Won?

It is hard to determine which channel won this race. Cash App is a great medium to transfer personal money. It also has a very distinctive feature that can help users invest in stocks and buy Bitcoin. PayPal doesn’t have these facilities.

However, for people who run businesses internationally and want an accessible medium for that purpose, PayPal is the best option. PayPal’s better data security is also very helpful with international transactions.


Final Thoughts for Cash App Vs. PayPal

Irrespective of who won, both Cash App and PayPal are unique and effective platforms for receiving and transferring funds. When choosing one, the user must first analyze needs and requirements before making the final decision.

For more comparison guides, check out:

For more Cash App and PayPal guides, check out: