Comparison · Updated October 20, 2026
Venmo vs PayPal for Business
Venmo (Business Profiles)
B-
A Venmo business profile lets a sole proprietor, club or registered business accept payments from Venmo's 67 million monthly users inside the app — by username, QR code, or, since March 2024, Tap to Pay on a phone — and it is the only Venmo product that a merchant signs up for directly rather than through PayPal or Braintree. Venmo was founded in New York in 2009 by Andrew Kortina and Iqram Magdon-Ismail, bought by Braintree in 2012 and by PayPal with Braintree in 2013; it is operated by PayPal, Inc., which holds money-transmitter licences in every US state and is not a bank, and business profiles were opened to all sellers in February 2021. On PayPal's fee page as of September 2026 a business profile pays 1.9% + $0.10 on every payment of $1 or more it receives from another Venmo account, and 2.29% + $0.09 on a contactless card or wallet accepted with Tap to Pay, which is available on iPhone and Android in the United States only. There are no monthly, setup or chargeback fees, receiving is unlimited, and money moves to a bank for free in one to three business days or in minutes for 1.75% (minimum $0.25, maximum $25). The customer pays nothing extra, even when funding with a credit card, and buyers get Venmo's Purchase Protection on business-profile payments. What it is not is a merchant account: there is no interchange-plus, no invoicing, no card-on-file, no integrations, no seller protection beyond documented shipped-goods claims, one login per profile, management only in the app — and an operator whose 1.1 TrustScore from 1,268 reviews and 4,581 BBB complaints in three years are dominated by frozen accounts and held balances.
PayPal
A-
PayPal is a global, feature-rich digital payments platform (consumer wallet + merchant services) with extensive integrations and brand reach. It is trusted by many businesses but criticized in public reviews for dispute handling and account-hold practices.
VS
Overview
We compare the two for a US small business, using the fees each publishes as of October 2026. They are not rival companies. Venmo is a service of PayPal, Inc. Braintree bought Venmo in 2012, and eBay, then PayPal's parent, bought Braintree in December 2013 and kept Venmo as a separate app. PayPal took both with it when it split from eBay in July 2015. So the real choice is between two PayPal products. The first is a Venmo business profile, which you open yourself in the Venmo app. The second is a PayPal business account. One thing trips people up here. Taking Venmo at an online checkout ('Pay with Venmo') is not part of a Venmo business profile. It is sold through PayPal and Braintree at 3.49% + 49¢, the same price as the PayPal button. We compare like with like. When customers pay from their own app, Venmo charges 1.9% + 10¢ per payment and PayPal's QR code charges 2.29% + 9¢. Tap to Pay on the seller's phone is 2.29% + 9¢ on both, by each company's fees page, though some of their own pages say otherwise. Online, the Venmo and PayPal buttons cost the same. Only PayPal also takes cards online, has a priced invoicing tool, bills subscriptions and lets staff log in. Neither has a monthly fee or a contract. Payment Review grades PayPal A- and Venmo's business profiles B-.
Key Takeaways
- ✓PayPal is the more complete tool for most small businesses. One account takes the PayPal and Venmo buttons at checkout, cards online and in person, QR codes, invoices and subscriptions, and it allows up to 200 employee logins. A Venmo business profile takes payments only inside the Venmo app and by Tap to Pay, and only the person who created it can log in.
- ✓When customers pay from their own app, Venmo is cheaper. A business profile pays 1.9% + 10¢ per payment of $1 or more, against 2.29% + 9¢ for a PayPal QR code payment, as of October 2026. On a $40 sale that is 86¢ against about $1.01.
- ✓Some prices are identical because the same company sets them. Tap to Pay on a phone costs 2.29% + 9¢ on both, by their fees pages (some of their other pages disagree), and the Venmo button at an online checkout costs 3.49% + 49¢, the same as the PayPal button. Venmo at checkout is sold through PayPal or Braintree, not through a business profile.
- ✓Both run on free standard transfers, which take 1–3 business days to a bank. Instant transfers cost 1.75% on Venmo (minimum 25¢, maximum $25) and 1.5% on PayPal (minimum 50¢, no maximum listed). Which is cheaper depends on the amount you move.
- ✓Neither has a monthly fee or a contract, and you can close either account at any time. Both reputations are poor: Trustpilot scores of 1.1 for Venmo and 1.4 for PayPal, with complaints about held funds and frozen accounts.
Venmo (Business Profiles)
Choose a Venmo business profile if you are a sole proprietor or small in-person business whose customers already ask "do you take Venmo?". It costs 1.9% + 10¢ per payment, with no monthly fee, and Tap to Pay on your phone covers customers who would rather use a card. Treat it as an extra way to get paid, not as your only processor: there is no online card checkout, no documented invoicing tool, and only one login.
PayPal
Choose PayPal if you sell online, send invoices, bill subscriptions or have staff. One account takes the PayPal and Venmo buttons, cards and QR codes, at 2.29% + 9¢ in person and 3.49% + 49¢ for the wallet buttons online. Standard bank transfers are free.
Overall Winner
🏆 Winner
PayPal
A-expert grade
Runner-up
Venmo (Business Profiles)
Why?
PayPal is the better choice for most US small businesses, because one account covers almost everything. It takes the PayPal and Venmo buttons at checkout (3.49% + 49¢), cards online and in person, QR codes (2.29% + 9¢), invoices and subscriptions, with up to 200 staff logins and no monthly fee. A Venmo business profile does one job well: when customers pay you from the Venmo app, it charges 1.9% + 10¢, less than any PayPal option. It also has Tap to Pay, at the same 2.29% + 9¢ as PayPal by both fees pages. But it has no online card checkout, no documented invoicing tool, no recurring billing and only one login. Many small businesses will do best with both: a PayPal account as the main way to get paid, plus a Venmo business profile for customers who want to pay from Venmo.
Feature by feature
Detailed Comparison
Filter Options
Getting paid in person (US, as of October 2026)
| Feature | Venmo (Business Profiles) | PayPal |
|---|---|---|
| Customer pays from their own app | 1.9% + 10¢ per payment of $1 or more Winner | 2.29% + 9¢ (PayPal QR code) |
| Venmo's fees page charges 1.9% + $0.10 on payments sent to a business profile from another Venmo account. Its Tap to Pay FAQs say this applies to each payment of $1.00 or more. PayPal's fees page lists QR code transactions at 2.29% plus a 9¢ fixed fee for US dollars, and its QR code page gives the same figure. A Venmo business profile charges this whether the customer scans its QR code or finds it by name. A PayPal QR code is paid from the PayPal app (a payment sent to a PayPal account by email or username and marked for goods and services costs 2.99% instead), and PayPal's POS page says its point of sale also takes Venmo QR codes. On a $40 sale, Venmo charges 86¢ and PayPal about $1.01. The customer pays no fee on either; Venmo's business page says this holds even when a customer pays a business by credit card. | ||
| Contactless card on the seller's phone (Tap to Pay) | 2.29% + 9¢ | 2.29% + 9¢ |
| Venmo's own pages disagree. Its fees page and both Tap to Pay FAQs (iPhone and Android) say 2.29% + $0.09. Its business-profiles page and its business start page say 2.9% + 9¢, with a worked example of $2.99 on $100. We use the fees page, which the user agreement points to. PayPal's fees page lists card-present transactions through PayPal Point of Sale at 2.29% + 0.09 USD. Its Tap to Pay page shows 2.29% with no fixed fee. Check the rate shown in the app before relying on either. | ||
| Keyed card entry | Not offered | 3.49% + 9¢ Winner |
| A Venmo business profile takes cards only by tapping them on your phone. PayPal Point of Sale lists manual card entry at 3.49% + 0.09 USD. | ||
| Goods-and-services payment to an ordinary account | 2.99% (personal Venmo account) | 2.99% (PayPal send/receive for goods and services) |
| This is what a seller pays without a business profile on Venmo, or without a QR code or checkout on PayPal, when the buyer marks a payment as for goods and services. Venmo's user agreement says you may sell through a personal account only this way. On Venmo, a business profile at 1.9% + 10¢ is cheaper than 2.99% on any payment over about $9. | ||
Customer pays from their own app
Venmo (Business Profiles)
1.9% + 10¢ per payment of $1 or more
Winner
PayPal
2.29% + 9¢ (PayPal QR code)
Venmo's fees page charges 1.9% + $0.10 on payments sent to a business profile from another Venmo account. Its Tap to Pay FAQs say this applies to each payment of $1.00 or more. PayPal's fees page lists QR code transactions at 2.29% plus a 9¢ fixed fee for US dollars, and its QR code page gives the same figure. A Venmo business profile charges this whether the customer scans its QR code or finds it by name. A PayPal QR code is paid from the PayPal app (a payment sent to a PayPal account by email or username and marked for goods and services costs 2.99% instead), and PayPal's POS page says its point of sale also takes Venmo QR codes. On a $40 sale, Venmo charges 86¢ and PayPal about $1.01. The customer pays no fee on either; Venmo's business page says this holds even when a customer pays a business by credit card.
Contactless card on the seller's phone (Tap to Pay)
Venmo (Business Profiles)
2.29% + 9¢
PayPal
2.29% + 9¢
Venmo's own pages disagree. Its fees page and both Tap to Pay FAQs (iPhone and Android) say 2.29% + $0.09. Its business-profiles page and its business start page say 2.9% + 9¢, with a worked example of $2.99 on $100. We use the fees page, which the user agreement points to. PayPal's fees page lists card-present transactions through PayPal Point of Sale at 2.29% + 0.09 USD. Its Tap to Pay page shows 2.29% with no fixed fee. Check the rate shown in the app before relying on either.
Keyed card entry
Venmo (Business Profiles)
Not offered
PayPal
3.49% + 9¢
Winner
A Venmo business profile takes cards only by tapping them on your phone. PayPal Point of Sale lists manual card entry at 3.49% + 0.09 USD.
Goods-and-services payment to an ordinary account
Venmo (Business Profiles)
2.99% (personal Venmo account)
PayPal
2.99% (PayPal send/receive for goods and services)
This is what a seller pays without a business profile on Venmo, or without a QR code or checkout on PayPal, when the buyer marks a payment as for goods and services. Venmo's user agreement says you may sell through a personal account only this way. On Venmo, a business profile at 1.9% + 10¢ is cheaper than 2.99% on any payment over about $9.
Best For Your Business
Recommendations based on your business type
Market stall, food truck or pop-up whose customers ask to pay by Venmo
Recommended
Venmo (Business Profiles)
A Venmo business profile charges 1.9% + 10¢ when customers pay from their app, against 2.29% + 9¢ for a PayPal QR code. Tap to Pay on your phone takes contactless cards at 2.29% + 9¢ by Venmo's fees page (some Venmo pages say 2.9% + 9¢). There is no monthly fee and no hardware to buy. Move the balance to your bank often.
Online shop or app
Recommended
PayPal
A business profile has no checkout. To show a Venmo button online you need PayPal or Braintree anyway. PayPal Checkout puts the PayPal, Venmo and Pay Later buttons and card payments on one integration, with cards at 2.99% + 49¢, or 2.89% + 29¢ on the advanced integration.
Tutor, cleaner, trainer or other service business that bills clients
Recommended
PayPal
PayPal sends priced invoices and payment links and bills subscriptions; Venmo documents no invoicing tool. Venmo's user agreement forbids regularly recurring payments for goods and services through Pay or Request. Neither seller protection program covers services in general, so keep records of the work you deliver.
Business with staff or more than one owner
Recommended
PayPal
Only the person who created a Venmo business profile can log in, and only in the app. A PayPal business account can give up to 200 employees their own logins and permissions.
Side business or sole proprietor already taking Venmo payments
Both. If customers already pay you on Venmo, move those payments to a business profile at 1.9% + 10¢, which is cheaper than 2.99% on a personal account marked for goods and services. Add a PayPal account when you need online card payments or invoices.
Venmo (Business Profiles): Best for 1 use case
PayPal: Best for 3 use cases
Frequently Asked Questions
Common questions about this comparison
Yes. Venmo is a service of PayPal, Inc. Braintree bought Venmo in August 2012, and eBay, which then owned PayPal, completed its purchase of Braintree in December 2013, keeping Venmo as a separate app. PayPal became an independent company on 17 July 2015 and kept Braintree and Venmo. The two apps have separate accounts, fees and user agreements, but the same company runs both.
It depends how the customer pays. As of October 2026, a Venmo business profile charges 1.9% + 10¢ on a payment from another Venmo user, while a PayPal QR code payment costs 2.29% + 9¢. Tap to Pay on your phone is 2.29% + 9¢ on both. Online, the Venmo button and the PayPal button both cost 3.49% + 49¢. Only PayPal takes cards online, at 2.99% + 49¢. Neither charges a monthly fee.
Yes. 'Pay with Venmo' at an online checkout is sold through PayPal and Braintree, not through a business profile, and costs 3.49% + 49¢ per US transaction. You add it through a PayPal business account or a Braintree integration. A business profile is only for payments made inside the Venmo app and by Tap to Pay.
Venmo's user agreement says you may sell through a personal account only if the buyer marks the payment as for goods and services. In that case you pay 2.99%. A business profile charges 1.9% + 10¢ and adds a business name, a QR code, Tap to Pay and its own tax documents once the profile meets reporting thresholds. Either way, qualifying payments can be covered by Venmo's Purchase Protection. Selling through an unmarked personal payment breaks the agreement and can get the payment reversed.
Only in person. With Tap to Pay, a business profile takes contactless credit and debit cards and phone wallets on a compatible iPhone or Android phone, in the US only, for 2.29% + 9¢ according to Venmo's fees page. Some Venmo pages say 2.9% + 9¢, so check the rate in the app. You cannot key in a card, save a card on file or take cards online with a business profile. PayPal can do all three.
Payments land in your balance on both, though Venmo says a Tap to Pay payment can take up to 30 minutes to process. A free standard transfer typically takes 1–3 business days to a bank, or about 48 hours to a debit card. An instant transfer arrives in minutes for 1.75% on Venmo (minimum 25¢, maximum $25) or 1.5% on PayPal (minimum 50¢). Venmo caps a verified business profile at $49,999.99 a week in transfers out.
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