Venmo vs Zelle: Which Platform is Superior for Small Businesses

The payments world is becoming more and more convenient with each new invention. Quick, easy and secure transactions are rapidly replacing cash payments. Customers are increasingly adopting user-friendly payment platforms like Venmo and Zelle for day-to-day transactions.

Whether it’s for splitting dinner bills with friends, shopping online, or transferring money to family, users rely on Venmo and Zelle for fast payments. Businesses also offer these payment options now due to their popularity among customers. But how can your business decide which one is better for accepting payments? Let’s find out.

In this blog, we’ll compare Venmo vs Zelle in detail, examining their functions, fees, and security, so you can decide upon the more convenient option.

Venmo: An Overview

Venmo is a US-exclusive payment application. It is ideal for peer-to-peer transactions. The platform allows users to transfer payments to their friends and family conveniently. It also enables them to split payments for collective purchases. Users can also interact with each other on Venmo by adding notes to their transactions, and sharing their payment activities. Even though the platform primarily facilitates individual payments, businesses are also increasingly using it to process transactions.

Here is how Venmo works: Users download the Venmo app, and sign up. During the sign up process, they provide their personal and payment details, and link their Venmo account to their credit/debit cards or bank accounts. Users have the choice to make payments directly from their connected accounts. They can also use those cards or accounts to transfer and keep money in Venmo.

Venmo enables users to both transfer and request payments. They can request payments by filling in the payer’s details such as their username, email and phone number. If you’re a business, you can simply create a business profile in Venmo alongside your personal profile, and start accepting payments.

Users can attach messages to their payments as well to make their transaction experiences more personal and lively. Venmo has a unique social feed where its users can post their transaction activities (minus the amounts). Viewers can like and comment on these. Venmo equips users with its own Venmo MasterCard Debit Card. It can be used in any purchase where a MasterCard is accepted. Users can utilize their Venmo account to make both online and in-store purchases.

Zelle: An Overview

Zelle is also an easy to use payment platform available in the US only. It is linked to US-based bank accounts, and facilitates direct bank-to-bank transactions between users. With Zelle, users do not have to download a separate application to send or receive funds. That is because Zelle is available as a payment option in numerous US banking apps. Users have to check and confirm whether their banks support Zelle or not.

Both the sender and the receiver must be enrolled with Zelle to make peer-to-peer transactions possible. Users can send payments with Zelle by simply providing the recipient’s email or phone number. The actual payment information does not have to be shared, making it a secure way of conducting transactions.

Here is how Zelle works: Users do not create to create a separate Zelle account to use its services. They can simply log in to their banking app, navigate to the payment options, and click on Zelle for money transfer. They have to provide the receiver’s email or phone number for money transfer. Money transfers are direct, and take place within minutes.

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Businesses also use their banking apps to enroll with Zelle. They link Zelle with their business accounts, and agree to the terms and agreements. They provide their unique contact details (email and phone number) that will be used by customers for transferring payments. However, not all banks support Zelle for business. Users have to check with their specific banks for such details. Fees for business transactions also might apply, and can vary depending on the bank that offers Zelle access.

Venmo vs Zell: How Do They Support Business Transactions?

Venmo

Venmo supports business payments:

• Via Business Profile: Users create business profiles in Venmo to receive payments. Customers can pay by searching the business’s name within Venmo.

• Via Website: Businesses can integrate PayPal Checkout with their e-commerce sites. They can enable Venmo as a payment option on the checkout page. If customers have the Venmo app downloaded on their phones, they will see the “Pay with Venmo” option there. They can select this option and complete transaction. 

• Via Payment Link or QR Code: Businesses can generate payment links for customers. They can send them via email, SMS, social media, etc. Customers can simply click on this link to transfer the amount to the business’s Venmo account. Similarly, businesses can also generate QR codes for payments if they sell products in a physical store. Customers just have to scan the code to pay.

• Via POS System: If a physical store’s POS (point-of-sale) system has integrated with Venmo, it’ll allow customers to pay via their Venmo accounts.

• Via Venmo’s API: Large businesses can use Venmo’s API to integrate it as a payment option within their apps or websites. The buyer can pay using Venmo within the app or website without being redirected to an external page.

Zelle

Zelle supports business payments:

• Via Zelle for Business: Users can enroll with Zelle as a business to accept payments. This is possible only if the user’s bank supports Zelle for business. That is because Zell can only be accessed from within the bank’s app. Businesses can set up their official names, numbers and emails, so customers can use them to pay. When customers initiate fund transfers, Zelle allows them to view the business name at the time of payment confirmation. This protects customers from sending money to the wrong account due to typos in contact information.

• Via QR Code: Businesses can generate QR codes via Zelle for accepting payments in physical stores. But this option also depends upon the bank’s permissions. This feature might not be supported by all banking apps. 

• Via Payment Requests: Payment requests can be generated in Zelle and sent to customers like invoices. However, this feature too, like others, depends upon your bank’s permissions.

• Via Zelle Information on Invoice: Businesses can create customer invoices, and add their Zelle for business information on these invoices. For instance, they can add their Zelle-linked email address to the invoices. Customers will open Zelle in their own devices, type in the recipient email and transfer funds.

• Peer-to-Peer Payments: Small business might use their personal Zelle account to accept payments. However, it is recommended to switch to a business account to avoid any violation of terms.

Venmo vs Zelle: Feature-By-Feature Comparison

Let us explore the strengths and weaknesses of both the platforms by comparing their features:

Availability and Access

• Venmo: Businesses can use it online or download it as an app. They can also create business accounts, and link them to their credit/debit cards or bank accounts.

• Zelle: It is not available as an independent website or application (the Zelle app is being discontinued as of 2025). It can only be accessed via users’ banking apps. They cannot formally create an account in Zelle with its separate log-in credentials. Instead, they log in to their bank app once, and access Zelle from there.

Fund Storage

• Venmo: Venmo acts as a digital wallet as well. Users can receive and store funds in Venmo for future use.

• Zelle: Zelle acts more like a payment gateway. It does not hold users’ funds. The funds get directly transferred to their bank accounts.

Speed of Transfers

• Venmo: The platform offers both standard and instant transfers. Standard transfers take around 1-3 business days to process. Instant transfers are completed immediately, but come with a fee.

• Zelle: The platform offers only bank to bank transfers, and they take place instantly. There is no waiting period in between.

Payment Acceptance

• Venmo: Businesses can accept payments via their business accounts. They can generate payment links and QR codes for this purpose. They can also integrate Venmo with their checkout pages or apps.

• Zelle: Zelle for business is only accessible from within your banking app. It is not possible to use Zelle’s business functionalities if your bank does not support it. The banks which offer Zelle for personal use do not necessarily support Zelle for business too. Businesses cannot commonly generate QR codes or payment requests using Zelle. They have to rely on direct bank transfers only.

Payment Methods

• Venmo: It supports a variety of payment methods including Venmo balance, credit/debit cards, and linked bank accounts.

• Zelle: It supports direct bank transfers only. Zelle can only be used by individuals who have a US bank account.

Payment Limits

• Venmo: It does not impose any payment receiving limitations on business accounts. However, there are payment sending limits. Users can transfer no more than $25,000 in one go. Their weekly transfer limit is up to $50,000. The limit for instant transfers via debit card is $10,000 per transaction. For bank accounts it is $50,000.

• Zelle: It also does not impose any receiving limitations. The daily sending limit is $2,500 per transfer, while the monthly sending limit is $20,000. It is important to note that these limits can vary from bank to bank.

Integration

• Venmo: It can be integrated with e-commerce platforms, business websites and applications. It is available as a payment option with PayPal Checkout as well. Additionally, Venmo offers users its own debit card for physical purchases.

• Zelle: It cannot be integrated with external websites and apps. It offers bank to bank transfers exclusively.

Customer Support

• Venmo: It offers quick customer support via phone, email and live chat.

• Zelle: The platform does not typically offer customer support directly. Users can contact their banks in case of any issues.

Apart from key features, the security measures and fee structures of both payment apps can also influence your decision. Let us now compare these factors for Zelle and Venmo.

Venmo vs Zelle for Business: Security Comparison

Venmo

• Encryption: Venmo facilitates data encryption for secure data transmissions. 

• Account Protection: The Venmo app allows secure access via passcodes set up by users, or biometric authentication. It includes facial and fingerprint recognition.

• Purchase Protection: Venmo offers purchase protection features, and assists users in getting their money back in case of unsatisfactory purchases.

• Privacy Settings: In their social feeds, users can decide who is eligible to see their activity. They can control their friends list, and also keep their payment activity private when they wish to. 

Zelle

• Bank-Level Security: Zelle is accessed from within your banking app. It enjoys the same level of security as the app does. The security measures usually employed by banks such as data encryption, fraud protection, biometric authentication etc. are applicable on Zelle users too.

• Verified Contacts Only: Users can only transfer money to Zelle-enabled accounts. This adds an extra layer of security and credibility to the transactions.

• Transaction Alerts: Users receive real-time SMS and email notifications whenever money is received in, or transferred from their account. This enables them to keep a track of their activity, and identify any unauthorized transactions on time.

• No Chargebacks: Once you send a payment via Zelle, there is no getting it back. Therefore, users must confirm the recipient’s identity thoroughly before confirming payment. For businesses, this feature adds a great benefit, as it prevents fraudulent chargebacks.

Venmo vs Zelle for Business: Fee Comparison

Venmo

• Money Transfer Fee: Venmo does not charge any fee if users send money via their Venmo balance, bank account or debit card. But, it does charge 3% fee on credit card transfers.

• Payment Reception Fees: There is no charge if you receive a personal payment. However, businesses receiving customer payments for products or services are charged 1.9% of the total amount + $0.10.

• Instant Transfer Fee: The platform charges 1.75% of the total amount for instant transfer to bank.

• Check Deposits: Venmo charges 1% for government or payroll checks. Users have to pay 5% fee for all the other checks.

Zelle

• Personal Transactions: There are no fees applied by Zelle. However, some banks may charge their own fees for Zelle usage.

• Business Transactions: Zelle for business also does not impose any fees on business payments. However, banks might. These fees may vary from bank to bank, and need to be confirmed beforehand.

Made Your Choice Yet?

If you are still on the fence, here’s a quick rundown for you.

Both the platforms excel in simplifying transactions in their own ways. If you are a small business owner, and want to accept customer payments the casual and user-friendly way, both platforms are a great choice.

Venmo is especially great since it offers your customers a number of payment methods to choose from. Venmo is also more business-oriented than Zelle, as it lets you create a unique business profile. With Venmo, you can generate payment links and QR codes, which you cannot typically with Zelle. It also gives you access to detailed transaction histories, a feature Zelle lacks. It is this added functionality of Venmo that makes it a more appealing option for business transactions.

On the other hand, Zelle could be a good option for you if you prefer direct bank transfers, instant transactions, and zero fees.

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