Google Pay vs Venmo: Which is best for businesses?

If you’re considering offering digital payment options to your customers, you may already be familiar with the differences between Google Pay vs Venmo. Google Pay is part of one of the world’s most well-known tech giants, while another giant, PayPal, has owned Venmo since 2013.

Both Google Pay and Venmo handle business and peer-to-peer transactions. When weighing how Venmo stacks up against Google Pay as a driver of business earnings, here are some distinctions you may want to consider.

Google Pay vs Venmo: Tech and features

Let’s start with some background: The two platforms were originally designed with slightly different core features aimed at different target audiences, but over time the differences between them have dwindled.

“Google Pay offers online transaction services with the help of a phone number and QR code, and it also lets users check their account balance,” says Sachin Yadav, founder of Technologers.com. “It allows users to pay their contacts in just two steps.”

Venmo has always been a giant in peer-to-peer transactions, but Google Pay recently narrowed the gap between the two platforms with its introduction of Google Wallet, which holds digital payment details, transit passes, tickets, and more for both business and peer-to-peer transactions. In conjunction with this enhancement, Google Pay’s main app added budgeting and bank transfer options.

Venmo also allows users to pay any business that accepts it directly from a bank account or with debit cards, credit cards, and even direct deposit advances — though it does charge an extra fee for credit card payments. Google Pay provides those same options, minus the credit card fee and direct deposit advances.

On the business side of things, both platforms allow customers to pay you from multiple convenient sources. Google Pay for Business deposits funds directly into your business bank account. Venmo doesn’t automatically transfer funds to a business bank account; you have to transfer the funds out of the app, a service that’s free if you stick with the standard turnaround time. If you need an instant transfer, there’s a small fee.

One of the biggest differences in a Google Pay vs Venmo comparison is geographic reach. Google Pay caters to customers in 57 countries, whereas Venmo is exclusive to the United States. So if your business has a significant e-commerce component — or otherwise markets to customers outside the U.S. — Google Pay may be a more helpful cashless option.

Regarding finances, Google Pay costs nothing for businesses and their customers. This is an attractive feature for businesses looking to cut costs and capture more cashless customers without worrying about any extra fees. Venmo, on the other hand, does charge merchants a fee: 1.9 percent of the total transaction, plus $0.10. It’s worth noting, however, that with Venmo, you can give customers the ability to add a tip within the app.

Google Pay vs Venmo: Platform integrations

While Venmo doesn’t list out its favored website-building or e-commerce partners, it does offer a relatively simple integration process that allows for virtually limitless use of its checkout button in your online spaces.

Google Pay displays a lengthy list of partners on its site; the platform boasts integration with popular website builders, ticketing and event platforms, and other e-commerce standbys — with the ability to add a Google Pay option without using code or with a very small amount of coding. If you have a bit more familiarity with code, though, Venmo can basically offer the same: You’ll have to jump through a few more hoops set by parent company PayPal, but the coding task involved in adding the Venmo button is relatively straightforward.

Google Pay vs Venmo: Security and rewards

Venmo and Google Pay both offer advanced security measures. Google Pay offers fraud alerts, biometric password capabilities, and a virtual account number (VAN) each time a customer pays with any account. Venmo offers merchants Venmo Purchase Protection and the identity verification the company requires of its users.

Rewards are similarly well-developed features. Google Pay merchants can offer customers digital loyalty cards in the Google Pay app, while Venmo merchants can entice their customers with a feature in the Venmo feed — opening up a way to attract new customers.

In the end, Yadav highly recommends Google Pay to small and medium-sized businesses. Venmo, we’ve found, is most convenient for a similar but somewhat smaller audience — but considering that its international reach doesn’t come close to Google Pay’s, Google Pay is the most practical option for a business that wants to leave room for global expansion.