You need to send $20 to a friend. You’re splitting a dinner bill, paying your share of the rent, or buying a used item from a local marketplace.

Which app do you reach for?

At first glance, PayPal, Venmo, and Cash App all seem to do the same thing: send money from your phone. But each one has a distinct personality and is built for a different primary purpose. Let's break down which one you should use and when.

The Quick Verdict: Which One Is Best?

Don't want to read the details? Here’s the simple answer.

  • Best for Online Shopping & International: PayPal. It’s the most-accepted, has strong buyer protection, and works globally.
  • Best for Social & Splitting Bills: Venmo. Its main purpose is sending money to friends with a (optional) social feed.
  • Best for Simplicity & "Extras": Cash App. It’s a super-simple payment app, but it also includes a free debit card, discounts (Boosts), and is the easiest way to start buying stocks or Bitcoin.

1. PayPal: The "Grown-Up" for Everything

PayPal is the original and the most "professional" of the three. It’s less for splitting a quick $10 for coffee and more for serious transactions.

  • What it's for: Its power is in online shopping. When you check out at a store, PayPal is the button you see. It offers excellent Buyer and Seller Protection, which gives you peace of mind that you'll get your item or get your money back.
  • Key Features:
    • Works almost everywhere online.
    • Excellent for sending money internationally.
    • Great for "Goods & Services" payments (which protects you).
    • Can be used for professional invoicing.
  • The Downside: The interface is more complex ("busier") than the others.

Bottom Line: Use PayPal for online checkout, paying for services, or sending money to family in another country.

2. Venmo: The "Social" Way to Pay Friends

Venmo (which is actually owned by PayPal) was built to solve one specific problem: making it easy and a little fun to pay your friends.

  • What it's for: This is the app for splitting the dinner bill, paying your roommate for utilities, or sending a birthday gift. Its defining feature is a social feed where you can see (or share) your payments with emoji-filled notes.
  • Key Features:
    • Incredibly simple to find and pay friends.
    • The social feed makes transactions feel casual.
    • Has its own debit and credit card.
  • The Downside: The social feed is a privacy concern for many (you MUST set your payments to "Private"). It is also US-only, unlike its parent company, PayPal.

Bottom Line: Use Venmo as your digital wallet for friends and family. It's the modern way to say, "I'll pay you back."

3. Cash App: The "All-in-One" Money App

Cash App (owned by Block, formerly Square) started as a simple competitor to Venmo but has grown into a full-blown, beginner-friendly financial app.

  • What it's for: At its core, it's a dead-simple way to send money. But its real power is in the "extras."
  • Key Features:
    • The Cash Card: It comes with a free, customizable debit card that is tied directly to your balance.
    • Boosts: The Cash Card gives you instant discounts (like 10% off at Starbucks or $1 off any coffee) that are genuinely useful.
    • Investing: You can buy fractional shares of stocks (like $5 of Apple) and buy/sell Bitcoin right from the app.
    • It often feels faster than Venmo for standard (free) bank deposits.
  • The Downside: It has lower sending limits than PayPal for new users and less buyer protection for "business" transactions.

Bottom Line: Use Cash App if you want a simple payment app, a free debit card, and an easy entry point into investing small amounts of money.

Head-to-Head: The 3 Big Differences

  1. Fees: For the main purpose—sending money from your bank account to a friend—all three are free. Where they make money is on Instant Transfers (if you're in a hurry and can't wait 1-3 days). They all charge a similar fee for this (usually 1.5% to 1.75%).
  2. Global vs. US-Only: This is simple. PayPal is global. Venmo and Cash App are for payments within the US only.
  3. Core Purpose: This is the most important difference.
    • PayPal is an online payment processor.
    • Venmo is a social payment app.
    • Cash App is a simple banking/investing app.

Final Verdict

You can't go wrong, and many people have all three. But if you're just starting, pick the one that fits your life:

  • For paying friends: Start with Venmo or Cash App.
  • For online shopping: You need PayPal.
  • For a first debit card or to buy Bitcoin: Get Cash App.