Both PayPal and Venmo have the same parent company – PayPal. That’s right. If you weren’t aware of this fact, now you are. PayPal acquired Venmo indirectly in 2013 when they bought Braintree.
Knowing that, the answer to the question regarding sending money between the two should be pretty straightforward. But is it?
Venmo and its parent company PayPal are juggernauts in the money transfer industry. Both are ubiquitous and widely used in the United States and, in the case of PayPal – around the globe.
Billions of dollars are transferred each month by tens if not hundreds of millions of users.
Let’s get down to business, shall we?
Can you send money from PayPal to Venmo?
Although PayPal owns Venmo, the two fintechs aren’t connected in a manner that would let you transfer money between the two. I find the fact extremely fascinating.
As a matter of fact, I know that many people don’t want to open a Venmo account due to its similarities to social networks and its privacy issues. The same is true the other way around. Many folks don’t want a PayPal account as it can be notoriously expensive and restrictive.
So, if you were looking to send money from PayPal to Venmo, there isn’t a direct way to transfer money or pay someone. But, we might be able to help you.
If there are no direct ways to send money from PayPal to Venmo and vice versa, is there a workaround then? There are a few alternative ways, but you probably won’t like them. Let’s see what they are.
How to send money from PayPal to Venmo?
Even though there isn’t a direct way to transfer money between the two, there are many more or less complicated options.
1) Make the recipient open a PayPal account
This is a free and quick way to send money if you already have a PayPal account. You’ll just need to talk the other person into opening a PayPal account as well. It’s free to open one, and they can literally do it in minutes.
You’ll both benefit from a free and instant transfer from PayPal to PayPal if there’s no currency exchange involved, i.e., you’re sending dollars to a dollar account.
2) The sender can open a Venmo account
This is still an easy option, but it could take a few days to finalize, and you will pay a 1% fee if you choose Instant Transfer.
To open a Venmo account, you’ll have to live in the US and have a US cell phone number. You’ll have to link your bank account to Venmo and then deposit the money into the account. To do this, it could take up to three business days.
After you get a Venmo account and link your bank account to it, the transfer is instant between the two Venmo accounts.
3) Transfer to a common bank account first
If for some reason, you’re trying to send money to your own Venmo account, you can link your bank account to both your PayPal and Venmo account and send money first from your PayPal to your bank account, and then transfer it to Venmo.
Can you send money from Venmo to PayPal?
The answer is the same the other way around – there’s no direct way to send money from Venmo to PayPal. Same owner, a similar system, but no way to send money directly between the two. Will it ever be possible? Let’s hope so. It would be so much more convenient. But let’s see now how to send the money indirectly.
How to send money from Venmo to PayPal
1) Make the recipient open a Venmo account
The recipient will have to have an address in the US and a US cellphone number to open a Venmo account. After successfully opening the account, they’ll have to link a bank account, so they’re able to withdraw the money later.
This could take a few days, but the transfer will then be instant if you’re ready to pay a 1% fee. If not, the transfer will take a few days to finalize.
2) The sender can open a PayPal account
If you don’t already have a PayPal account, by some miracle, it’s easy to sign up and link a bank account to it. You’re then ready to send the money for free to another PayPal account, as long as there’s no currency exchange involved. In that case, you’ll pay for currency exchange fees.
3) Transfer to a common bank account first
All three accounts (Venmo, PayPal, and bank) will have to be in the same name, so this is only suitable if you’re transferring money to yourself.
Once you’ve linked your bank account to both Venmo and PayPal, you can send money from Venmo to the bank account and then transfer it further to PayPal. Your funds should arrive in your PayPal account in three to five working days.
Things to avoid
PayPal is easy to use, and I personally use it often even now when there are many alternatives on the market. It’s easy to use, most people already have an account and are therefore comfortable using it, and it’s free if the transfer is in the same currency.
There’s one thing that PayPal sucks at, though. And that’s currency conversion. If you’re forced to do any kind of currency conversion with PayPal, you’ll be wasting your hard-earned money.
They attach a fixed fee plus an exchange rate margin fee from 2.5-4.5%. This makes PayPal extremely expensive to use if you need to make a currency exchange. We, therefore, recommend other ways to transfer money across borders or across currencies. Find reputable money transfer services on our page here.
The bottom line
So what’s the conclusion here? As you can see, there’s no direct way to send money from PayPal to Venmo or from Venmo to PayPal. Even though they are both owned by PayPal, the company didn’t bother to connect the two payment and money transfer services together.
We can only hope that they decide to do it in the future.
Adrian Volenik is a fintech enthusiast who loves testing and reviewing digital banking apps and financial products in general. How many digital banking accounts can one man have? Not enough, if you ask Adrian. As his wallet will soon explode if he doesn’t cut back on the number of cards.