The Best Cash App Alternatives

Cash App ranks among the top choices in the US for quick, person-to-person payments. Users can send money instantly using a recipient’s $cashtag, phone number, or email. Despite its popularity, Cash App has drawbacks, such as its restricted service outside the US and UK, making it less suitable for international transactions. This guide will explore several leading alternatives to Cash App that excel in fund transfers, including those that facilitate international payments.

Top 10 Alternatives to Cash App

Cash App provides a fast way to send and receive payments, shop online with a linked card, get early access to direct deposits, and even dabble in investing. Users can transfer money instantly using just a recipient’s contact details or their unique $cashtag. This convenience eliminates the need for traditional bank accounts and routing numbers. Despite these benefits, Cash App does have its shortcomings.

While it’s effective for transactions within the US and to some extent with the UK, its international services are not as expansive. Additionally, users may incur ATM fees when withdrawing cash quickly.

For those who need more versatile or cost-effective solutions, especially for international transfers, exploring other financial apps is advisable.

1. PayPal

Source: PayPal

PayPal is a practical choice for those who need to manage online payments and international transactions. It operates in over 200 countries and offers services in multiple currencies. Users can make purchases from major online retailers like Amazon and Walmart.

For business owners and online merchants, PayPal provides a range of services, including e-commerce tools that work with Shopify and WooCommerce. It boasts an extensive set of features such as customer relationship management and accounting software integrations, comprehensive invoicing, detailed reporting, a variety of merchant services, and a built-in payment gateway.

While Cash App is available only in the US and UK, focusing mainly on peer-to-peer transactions with limited online shopping and business features. However, its fee structure is generally simpler and often cheaper for personal use than PayPal’s, although PayPal allows for more transaction limits. PayPal’s fees include a 3.49% charge plus an additional $0.49 for transactions made with debit or credit cards.

2. Venmo

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Venmo, similar to Cash App, offers a straightforward method for sending and receiving money among friends and family within the US. Ideal for activities like sharing bills or managing rent payments, Venmo integrates social functionalities that enhance interaction through likes, comments, and chat features during monetary transactions. Users can link their Venmo accounts to a bank account or their preferred payment cards, enabling them to fund transfers either from an external source or any existing Venmo balance.

Particularly useful for small to medium-sized businesses seeking simple payment solutions, Venmo is accessible on iPhone, iPad, and Android devices and supports Bitcoin transactions. It provides a user-friendly platform to pay friends, send money, and make purchases. Venmo ensures ease of linking bank accounts or debit cards, offering both convenience and high security. Transaction safety is bolstered by advanced encryption and continuous monitoring to prevent unauthorized activities. Venmo’s primary appeal includes its cost-free standard service, with a nominal 1.75% fee applied only on instant transfers. Additionally, the app applies a 3% fee for sending funds using a credit card.

However, a significant limitation of Venmo is its availability, which is restricted to users within the US, necessitating alternatives for international payments.

3. Zelle

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Zelle, like Venmo, is a platform available only in the US and is useful for anyone dealing with friends and family who have US bank accounts. This peer-to-peer application enables users to send and receive money directly to bank accounts or their Zelle account. Transfers are quick, typically completed within minutes, and most major US banks and credit unions support the app. There is no fee for sending or receiving money through Zelle, although individual banks may charge a fee.

Zelle partners with major US banks such as Bank of America, Chase, US Bank, Citi Bank, and Wells Fargo, allowing instant money transfers via the recipient’s registered phone number or email. If your bank or credit union is not a Zelle partner, you can still use Zelle but are limited to sending or receiving up to $500. While Zelle has its own mobile app, many banks also include Zelle within their banking apps.

Unlike some competitors, Zelle does not provide a US checking account, debit card, spending rewards, stock trading, Bitcoin, joint accounts, or other additional services. It is best used for quick money transfers between personal bank accounts. It is important to use Zelle only with people you know and to double-check all transaction details.

4. Chime

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Chime primarily offers traditional banking products, whereas Cash App is better known for its peer-to-peer (P2P) money transfer capabilities. Despite their differences, both apps provide similar features such as early direct deposits, cash advances, savings accounts, and P2P payments.

Chime stands out in the US as a popular digital checking account application, allowing instant transfers to fellow Chime users, presenting a solid alternative to Cash App for P2P payments. It also offers additional benefits like the ability to earn interest through an optional high-yield savings account, improve credit scores with a credit builder card, and withdraw cash without fees at over 60,000 ATMs.

Key benefits of Chime over Cash App include the credit builder option and opportunities to earn additional income through its marketplace. However, Chime lacks investment features and Bitcoin transactions and does not support accounts for teenagers. Also, unlike Cash App, Chime does not facilitate money transfers to the UK.

Chime is free to use, with no monthly, minimum balance, or foreign transaction fees. Additionally, it does not charge for overdrafts, debit card usage, or withdrawals from in-network ATMs.

5. Google Pay

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Google Pay, previously known as Android Pay, stands out in the increasingly crowded mobile payment sector. It supports a wide range of devices and offers several benefits, making it a convenient option for those preferring not to use cash or physical cards. The app features a “Tap & Pay” function that simplifies transactions to a quick phone tap at the payment terminal, and users can prioritize their most frequently used credit card for quicker access.

For added security, Google Pay allows the use of a fingerprint instead of a PIN or password, reducing the need to repeatedly enter security codes. Recently, Google Pay expanded its services by integrating basic checking and savings account features through partnerships with various banks, although it’s clear that Google itself is not providing banking services. Instead, it links your bank accounts directly to the app.

Data loss is also less of a concern since Google enables the backup of all payment information to the cloud, allowing for a quick recovery if needed. Google Pay itself does not impose fees for sending money within the US, but associated banks or cards might charge based on the transaction setup. The app restricts you to $25,000 in total transactions, with a maximum of 30 withdrawals and a $1,000 transfer limit every seven days. Additional features include bill splitting, personalized deal recommendations, and the “Insights” feature, which provides an overview of your spending and saving habits, alongside limited banking functions.

6. Payoneer

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Payoneer is a popular platform for handling online payments, frequently used by freelancers, businesses, and individuals engaging in international transactions. This platform supports transactions in multiple currencies and offers various payout methods. Its advantages include centralized payment reception, diverse withdrawal options, and the ability to manage money in different currencies.

Payoneer facilitates global payments, akin to other payment services like PayPal, but with unique features that distinguish it from competitors.

Users with a Payoneer account can transfer funds directly to other Payoneer accounts, which is particularly useful for sending money to friends or family internationally, provided the recipient also has a Payoneer account.

Transfers between Payoneer accounts are free, as are transactions through virtual accounts. A fee of 3% applies to payments received via credit card, while ACH bank debit transactions attract a 1% fee. Moving funds from Payoneer to a local bank account incurs a charge of $1.50, and converting funds from a foreign currency is subject to up to a 2% fee.

However, Payoneer has some drawbacks. An annual fee of $29.95 is charged if no transactions are made with a Payoneer account or card over 12 months. This fee is waived if the account processes more than $2,000 (or its equivalent) in payments within the year.

7. Revolut

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Revolut is a multifunctional app that provides a range of financial services, serving as a digital wallet for secure payments. It offers tools for budgeting and enables international money transfers, designed with a user-friendly interface to help users manage their finances more efficiently.

Revolut’s features include holding and exchanging over 30 currencies instantly, which helps avoid foreign transaction fees and facilitates easier global financial transactions. The app supports seamless international and cross-border money transfers, helping to reduce transaction costs and overcome geographical financial limitations.

As a relatively new market entrant, Revolut may navigate changing regulatory requirements in various regions. For cash withdrawals, standard plans may incur fees up to 2% for using out-of-network ATMs, though Metal plan users enjoy free withdrawals up to $1,200 per month, barring any additional fees from ATM providers.

For wire transfers, Revolut charges $10 for each domestic wire transaction. International transfers and non-USD domestic transfers over $200 attract fees of up to 5%. However, sending a bank transfer within the US is free of charge.

8. Stripe

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Stripe is a popular payment platform that accommodates both online and in-person transactions, making it a practical option for businesses. It is particularly useful for international sales, supporting more than 135 currencies and a variety of payment methods, including credit cards, mobile wallets such as Google Pay and Apple Pay. Stripe’s fees are competitive, charging 2.7% plus $0.05 for in-person payments and 2.9% plus $0.30 for online transactions, similar to other services like Square or PayPal.

One of Stripe’s advantages is its developer-friendly API, which allows businesses to integrate customized payment solutions into their websites or apps. This makes Stripe an appealing choice for businesses with access to technical expertise. It also provides additional features like recurring billing, invoicing, and support for marketplaces through Stripe Connect. However, the platform may be complex for non-developers, as many of its advanced features require coding skills.

For smaller businesses or those without technical staff, accessing all of Stripe’s capabilities might be challenging, and competitors like PayPal, which provides more straightforward, ready-to-use solutions, might be better choices.

9. Apple Pay

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Apple Pay provides a secure, contactless payment option for Apple device users, allowing them to conduct financial transactions conveniently. This system eliminates the need to manage cash or complete any forms, streamlining the payment process. Compatible with Cloud, Mac, iPhone, and iPad, Apple Pay enables users to make purchases with just a touch. It supports various payment options including credit cards, debit cards, and both in-app and in-store purchases, and it also facilitates cryptocurrency transactions.

The costs associated with Apple Pay are similar to those of other credit card transactions, and there are no extra fees charged to businesses or customers. However, certain retailers might impose a surcharge on any payment method, Apple Pay included. It is important to note that Apple Pay functions exclusively on Apple devices and is not a payment processor itself. Additionally, considerations include ongoing disputes between credit card issuers and Apple regarding transaction fees and the option for IT administrators to evaluate whether Apple Pay suits their organization’s needs. For Apple Cash Instant Transfers, a fee of 1.5% is applied, with charges ranging from a minimum of $0.25 to a maximum of $15. These transfers typically occur immediately but may take up to 30 minutes.

10. Wise

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Wise offers a cost-effective solution for bank-to-bank and card-to-bank transfers both within the US and internationally, making it a compelling option for those who need to manage international and occasional local transactions. Beyond being just a payment app, Wise features a multi-currency account which allows users to make both small and large transfers globally. Users can sync their contacts to connect with friends upon registering for their Multi-Currency Account.

The standout feature of Wise is its ability to hold and manage funds in over 40 different currencies and provide local bank details in 10 currencies, simplifying international transactions. Users can benefit from the issuance of a MasterCard debit card, which is available for a nominal fee. This card is particularly useful for online purchases and while traveling, as it avoids high currency conversion costs.

Wise is especially suitable for digital nomads, frequent travelers, and businesses with global operations, offering a specialized business account to meet their needs. Regarding costs, Wise typically charges between 0.4%-1% of the transfer amount, which is highly competitive. Transfers are processed at the mid-market rate without any markups, keeping fees among the lowest in the industry.

Wise reduces potential bank fees by maintaining local bank accounts in all serviced areas. Additionally, users can save further through monthly volume discounts, which are beneficial for both business transactions and substantial personal transfers. Wise also offers free debit, credit, and virtual cards, enabling spending in various currencies without incurring conversion fees, enhancing its appeal for users who frequently deal with multiple currencies.

Things to Consider When Selecting the Right Cash App Alternative

When looking for the best mobile money apps, it’s important to consider a few key features that can enhance your experience and utility. Here’s what you should evaluate:

• User Base: An app with a large number of users can simplify the process of sending and receiving money. Popular platforms like Venmo and PayPal are good choices because many people use them for transactions between peers.
• Fees: Understanding the fees for transactions is crucial. For example, Venmo charges a 3% fee for payments made with a credit card and a 1.75% fee for quick transfers. Cash App generally has lower fees, though charges apply for rapid transfers to a bank. Apps like Apple Pay usually do not have fees for transfers.
• Customer Support: Effective customer service is vital for resolving issues such as failed transactions or unintended payments. This support is particularly important in apps that manage large or international transfers.
• International Capabilities: For users frequently engaging in international transactions, consider apps like PayPal and Wise, which support multiple currencies and offer competitive rates for global transfers.
• Travel-Friendly Features: Mobile money apps like Cash App offer travel debit cards that reduce or eliminate foreign transaction fees, which can save money while traveling.
• Incentives: Look for apps that reward regular use. Cash App, for instance, offers discounts at specific retailers through its “cash boosts” program.
• Financial Management Tools: Apps such as Chime and Cash App include features that help manage your finances, like automated savings and expenditure tracking, which can aid in maintaining financial health.

Conclusion

While Cash App is a convenient and popular choice for domestic transactions, particularly within the US and UK, it has limitations when it comes to international use and certain features. Fortunately, there are many alternatives, each with its strengths.

For users seeking international capabilities, apps like PayPal, Wise, and Payoneer offer more flexibility and better global reach. Venmo and Zelle excel in peer-to-peer transfers, while apps like Chime and Google Pay provide added banking functionalities. Choosing the right alternative depends on your specific needs, whether it’s lower fees, wider availability, or added financial tools.

Frequently Asked Questions