Square vs. Venmo: Which Payment Platform is Best for Your Needs?
Compare Square vs. Venmo to find the best payment solution for your needs. Discover fees, features, and the ideal choice for businesses and personal
When choosing between Square and Venmo, it all comes down to how we plan to use them. Square is a powerhouse for small businesses, while Venmo is great for casual payments.
Having used both extensively, we can confidently say that each has its strengths—but they cater to very different needs.
| Feature | Square | Venmo |
|---|---|---|
| Best For | Small businesses, retail, service providers | Peer-to-peer transactions, casual payments |
| Transaction Fees | 2.6% + $0.10 (in-person), 3.5% + $0.15 (keyed-in) | 3% for credit card payments, free for bank or debit card |
| Ease of Use | Intuitive POS system, customizable options | Simple app interface, quick transfers |
| Business Features | POS hardware, invoices, inventory tracking | Limited business tools, mainly social payments |
| Transfer Speed | Next-day standard deposits, instant for 1.75% fee | 1-3 business days, instant for a 1.75% fee |
| Security | PCI-compliant, fraud detection tools | Encryption, buyer/seller protection |
| International Availability | US, Canada, Japan, Australia | US only |
Breaking It Down
Square – Built for Business
If you're running a coffee shop, boutique, or any customer-facing business, Square is hands down the better choice. I've used Square’s POS system, and its seamless integration with inventory tracking, tipping options, and business analytics makes it a no-brainer for merchants. The ability to send invoices directly and accept payments through various methods—including Apple Pay and Google Pay—adds another layer of convenience.
The only downside I’ve faced is the occasional processing delay when handling larger transactions, but overall, it’s a solid system.
Venmo – Social & Casual
Venmo shines when you need a fast, casual way to split dinner bills or send money to a friend. The social feature makes it fun, but it’s not ideal for professional transactions. I’ve had clients try to pay me via Venmo, but its lack of proper business invoicing and financial tracking made it impractical for anything beyond personal use.
For small vendors using Venmo Business, the fees are comparable to Square, but you lose the structured reporting tools that Square provides.
Which One Should You Choose?
- Use Square if you need a reliable business solution with proper invoicing, POS hardware, and financial tracking.
- Use Venmo if you're making personal transactions or casually selling items without formal business tracking.
Final Verdict
Both platforms serve their purposes well. If you're running a business, Square wins hands down. If you're just sending or receiving money from friends, Venmo is the way to go.
Would I rely on Venmo for my business? Not a chance. But for quick personal transfers? Absolutely.