The World Is Embracing Virtual Spending: Here are the Top Virtual Payment Apps

While paying online has become easier and more accessible over the years, the COVID-19 pandemic helped accelerate the growth of contactless payments and virtual spending.  As more and more people are embracing this type of spending, virtual payment options are growing as there are a number of different apps out there that you can use.

With that in mind, which virtual payment option may be right for you? Continue reading as we analyze seven of the top apps mobile payment apps (arranged in no particular order) available to most consumers right now. 

Option #1: PayPal

PayPal has been around since 1998 and acquired by eBay in 2002, making it the provider for eBay transactions.¹ Users are typically not charged a fee when sending money to friends or family members, but you will be charged a fee if you send money from a credit card or convert any currency. PayPal also offers users the ability to transfer money to any U.S.-based bank account as well as several foreign ones. 

PayPal Fees and Transaction Limits

It is free to open a PayPal account, however, there may be a 2.9 percent processing fee per qualifying transaction. Users can send up to $60,000 through PayPal, however, they may be limited to sending $10,000 per single transaction.²

Option #2: Venmo

Another great digital payment app is Venmo which is owned by PayPal. Although PayPal owns Venmo, there are a few key differences between the two apps. 

Venmo is specifically designed for sending money between friends and family. Venmo also offers a social aspect to V, it's users as they are encouraged to include brief messages or emojis in their transactions that can be seen by other users in your network.

Venmo uses encryption protocols to protect the personal and financial information of the users with information stored on servers that are in secure locations. For greater security measures, Venmo users can set up a PIN code and multi-factor authentication.  

Typically, Venmo is primarily used on your mobile phone, so, the above security measures are put in place to allow users to receive and transfer money quickly, easily, and safely.  

Venmo Fees and Transaction Limits

There is no cost to send money using your bank account, and users can pay for business transactions using this app. There is a three percent processing fee for qualifying transactions with a $299.99 spending limit for unverified users and less than $4,999.99 a week for verified users.² 

Option #3: Zelle

Zelle is a mobile app with a simple interface. As a user, you can send same-day money transfers to anyone who has an account with a participating bank including:

• Chase
• Bank of America
• Citi
• Wells Fargo
• Ally
• Capital One

You can download the Zelle app available on your phone, however, you can send money without the app, as well. Use your primary account when using Zelle, as you can only connect one account at a time using this app. 

Zelle Fees and Transaction Limits

Zelle is free for the user, however, for every transaction banks are charged between $0.50 and $0.75. As far as transactions go, if your bank doesn’t offer Zelle, then you can only spend $500 per week.³ If it does, you can spend up to $1,000 in 24-hours, $2,500 in a week or $10,000 in a month.⁴ 

Option #4: Apple Cash

If you have an iPhone, you can easily send or receive funds through Apple Cash. Below are the steps in order to use Apple Cash: 

1. Open the messaging app
2. Select or create a new contact
3. Tap the Apple pay icon at the bottom of your screen

Apple Cash Fees and Transaction Limits

Apple Cash Deducts a one percent fee from every transfer, and you can send or receive a minimum of one dollar with a maximum of $10,000 in a seven-day period.⁵ 

Option #5: Cash App

Formerly known as Square, the Cash App is now the number one finance app in the App store.⁶ Upon signing up, you are given a screen name called a $Cashtag. You can easily find others using their phone number or email address. Using a linked bank account, Cash App allows you to send and request money virtually. 

Cash App Fees and Transaction Limits

It is free to set up a Cash App account however, if you pay with a credit card, each transaction will incur a three percent transaction fee.⁶ It generally takes one to three business days to transfer funds to your bank account. If you prefer to receive your money instantly, expect a 1.5 percent transaction fee. On the Cash App, users are allowed to send up to $250 within a 7-day period and $1,000 within a 30-day period.⁷ 

Option #6: Google Pay

Formerly known as Google Wallet, Google Pay integrates with the G Suite account you may already have. It’s designed to work well with other Google products and services, making it easy and intuitive to use for those who are already accustomed to Google’s offerings.

Google Pay Fees and Transaction Limits

Google Pay is currently free to sign up. Google Pay users are limited to sending up to $10,000 in a single transaction.⁸ 

Option #7: Facebook Pay

Facebook is home to around 2.7 billion users.⁹ Through Facebook Messenger, users can send money to anyone with an account - as long as their debit card has been connected. Once payment has been accepted, it will appear in your bank account within five business days.  

Facebook Messenger Fees and Transaction Limits

Facebook Pay has no fees and does not store money in an online account. There is no minimum amount that you can send or receive and the maximum amount is $9,999.

Virtual payment apps have seen exceptional growth in users ever since the start of the Covid-19 pandemic. Now that the pandemic is coming to an end it appears that these apps will still be in high demand due to the convenience they offer users.  From online shopping to splitting the bill at dinner, payment apps provide convenience and security when it comes to spending your money. With plenty of options to choose from, these tools can help streamline your payment methods for future transactions.