Thanks to its free-of-charge system and an exceptionally dedicated millennial demographic, Venmo remains one of the most popular mobile financial services in the United States today.
Founded in 2009, the platform has been owned by PayPal since 2012 and has helped millions of Americans conveniently send money to friends and family across the nation.
But does Venmo support international money transfers? And what other countries can take advantage of their comprehensive mobile services? We answer all of these questions below.
The simple answer to this question is no. Venmo offers digital payment services to users residing only in the United States. In addition to the sender and receiver being physically present in the US, they must also be at least 18 years of age.
Furthermore, participants in the transaction must have a US cell phone to send and receive short codes for money to be successfully transferred.
With Venmo created for Americans and residents of the US, it is not surprising that all transactions are processed in the US dollar. In addition, having USD as the only currency saves Venmo users an extra fee in currency conversion.
Venmo's digital payment service is only available in the US and territories like Puerto Rico, Guam, and the US Virgin Islands.
Despite their proximity to the US, Canadians are not allowed to make or receive payments with Venmo. However, a Canadian that wants to send money to friends across borders can look beyond Venmo.
There are several other well-established digital payment options to send money conveniently and instantaneously to friends and family in Canada and other countries worldwide. We will be taking a look at some of these options in the upcoming sections below.
About a decade ago, the Venmo app rode the social media craze and hadn't looked back since. The word "Venmo" became a verb among millennials. Sentences like "I will Venmo you $10" became a substitute for sending money instantly.
Unlike PayPal, used majorly for business, Venmo is suited for straightforward, casual transactions. In addition, the person-to-person application provides millennials with a social media-esque timeline to add reactions as they send and receive money from their friends and family.
Other features of the platform, such as nearby payment and split payment, also resonate strongly with Millennials.
Like other payment solutions, you can incur charges when you use certain Venmo services. Although these charges are minimal, you can avoid them altogether when sending money to another Venmo account, bank account, or debit card.
Venmo charges 1.75% (minimum of 25¢ and maximum of $10) to fast-track transactions with the instant transfer option. In addition, a 3% fee is incurred when you use a credit card. For deposits, Venmo charges a 1% fee for payroll and government checks. Others are charged at 5%, at a $5 minimum.
Does Venmo work internationally? No. But it is designed to make transactions more friendly and with a personal touch, particularly for US-based friends and family. Individuals that prefer a social approach to sending and receiving money will also find Venmo appealing.
If you allow it, Venmo's home feed broadcasts your transactions, both inflows and outflows, to be seen by your social circle. Of course, Venmo is not exclusively for casual P2P transactions. Businesses can also accept payment for goods and services using Venmo.
If you're looking for a reliable and affordable Venmo alternative to send money internationally, below we've compiled a list of the top 7 money transfer services based on exchange rates, fees, transfer speed, and user-friendliness.
OFX is an Australia-based international payment provider that lets users transfer funds to over 195 countries. Unlike Venmo, which is limited to the US Dollar, users can send money via OfX to banks overseas across different continents and in over 50 local currencies.
In addition to the OFX website, the company also provides a dedicated app to make payments conveniently on the go. Though they have offices in Canada, the United Kingdom, Australia, the United States, Ireland, New Zealand, Singapore, and Hong Kong, all transfers via OFX are done online. No third parties/agents are involved.
Other OFX features include:
You can also guard your funds against devaluation by locking the FX exchange rate on OFX for up to 12 months.
Sending money online with OFX is more cost-effective than using the traditional banking service, which often attracts hefty charges. For example, at OFX, users are only charged $15 for transfers below $10,000 in countries besides the US and the UK. And it gets even better for transfers over $10,000, which aren't charged any fee at all.
Sadly, OFX adds markups over the mid-market rate. So depending on the country you are transferring to, the margin can range between 2 to 4%.
And even though OFX may attach no fixed cost to your transaction, it is essential to note that a third-party bank charge may apply to be deducted from the receiver.
If you ever need to send or receive money internationally, then OFX might be precisely what you need. You only need to ensure that the recipient's country and bank support OFX.
OFX is also great for sending large sums of money overseas. Still, you may have to consider other payment solutions for relatively small amounts. OFX users in the US are limited to a minimum of $1000. Those living in the UK and other parts of the world have a minimum limit of £100 and $250, respectively.
XE is a worthy consideration for those hunting for a recognized global money payment solution providing same-day transfers with no hidden charges.
All sensitive financial information provided on XE is protected by Norton Security and authorized by different financial institutions worldwide. In the US, XE is registered and holds the United States Financial Crimes Enforcement Network (FinCEN) license.
XE is a business that makes money by charging margins on exchange and transfer fees. The margin ranges between 0.4% and 1.6%, which is pretty considerate compared to banks or other financial services rates.
In addition, be prepared to pay a small fee when you transfer below $500 in CAD, NZD, AUD, and USD. For example, UK and European users pay £2 and €2 with every minimum transfer of £250 and €250, respectively.
Bear in mind that the recipient's bank can also deduct some amount from the final amount to be paid.
XE is best suited for those who wish to send at least $7,000 as an individual or business. Sending through XE instead of bank transfers helps you save significantly on this kind of transaction.
Of course, this is provided you're from one of the 170 countries supported by XE.
In addition to international money transfers, WorldRemit offers a good array of banking options, including cash pick-up, mobile money, airtime top-up, and door-to-door delivery.
While some international bank transfers via WorldRemit may take 2 - 3 days before completion, others are processed almost instantly.
Every WorldRemit account comes with a multi-currency wallet. With this feature, users can select from the list of supported currencies to make their transfers.
Making transfers from a WorldRemit account to another is near-instant. And on top of that, all WorldRemit features are also accessible via a smartphone app.
WorldRemit has a "no hidden charge policy." Still, the amount it charges on transfer, mobile money, and cash pick varies depending on location.
WorldRemit users from Africa, for example, are charged the lowest ($0.99 - $1.99 for these features). On the other hand, users in Asian countries pay between $1.99 - $3.99 for bank transfers and mobile banking. While cash pick-ups in most countries cost between $2.99 - $3.99.
Residents of countries like Australia, Canada, and the UK can only use WorldRemit to make bank transfers, and the fees start from $2.99. However, if airtime purchase is supported in your region, you can do that for free.
WorldRemit provides financial services to remote places, including African and Asian countries. As of the last count, the company offers services to over 150 countries. Such comprehensive coverage makes the service perfect for business owners that pay contractors, overseas staff, and freelancers in different parts of the world.
Individuals sending money to their friends and family will find it a convenient and cheaper alternative to conventional banking.
Receiving money with WorldRemit is as seamless as sending. For recipients, there are different options for cashing out funds, including bank deposits, cash pick-ups, door-to-door cash delivery, and airline top up.
Every Remitly user gets to choose how fast they want their transfer processed. For an immediate transfer of money to any country where Remitly is supported, Express comes recommended.
The Economy option is for senders who want good value and are not in a rush. The last option has cheaper fees but takes between 3 to 5 days to complete. When it is time for the recipient to withdraw, delivery methods available on Remitly include bank deposit, mobile money, cash pick up, and home delivery.
Note that the available options may depend on the country you send the money to. Therefore, ensure to check with the receiver before sending.
The exact amount Remitly charges on each transfer vary based on a handful of conditions. These include: originating country, recipient's country, service used, receiving currency, etc.
Remitly processes funds to most countries free of charge, provided that payment is sent using the Economy package. Zero fees are also charged in most cases when the recipient uses the mobile wallet, bank deposit, or debit card options.
However, cash pick and home delivery cost $1.99 to $3.99.
If you live in any of the 28 sending countries and over 100 receiving countries, then Remitly is worth a try. Whether it is for tuition assistance, household expenses, medical bills, and other personal use, Remitly makes transferring funds to family and friends effortless.
Though it was initially designed for sending money to loved ones, you can use Remitly for specific business purposes, purchases, or charitable giving.
Wise, formerly known as TransferWise, is a top international money transfer service regulated by authorities in the US, the UK, Canada, New Zealand, Japan, and several European countries. It protects customers' funds and data with top-notch security like 2-Factor Authorization, dedicated anti-fraud teams, and other measures.
Its multi-currency account allows users to add over 19 currencies and hold more than 50. Additionally, Wise offers account details in 10 major currencies: NZD, CAD, AUD, GBP, EUR, RON, HUF, JPY, SGD, and TRY.
Account holders in countries like Switzerland, Singapore, Brazil, Malaysia, Japan, New Zealand, Canada, the UK, and the US can apply for a Wise debit card. The card offers a low conversion fee and zero transaction fees.
The most essential services offered by Wise come at no cost. For example, sending money, receiving, and holding it in different major currencies is free. Depending on the currency, conversion when sending money starts at a margin of 0.41%.
Getting a Wise debit card costs a one-time payment of $9 in the US and £5 in the UK. Also, a fixed $4.14 is charged on every USD wire transfer. In addition, 2% of every $100 withdrawn plus $1.5 applies to every withdrawal at the ATM.
Pretty much all the fees on Wise vary from one country to another. So check the ones that apply to your country on the Wise website before proceeding with the transaction.
Whether you want to send, receive, spend or hold money in different currencies, Wise is an ideal one-stop shop. To send money, of course, you will need to register a Wise account. Wise payments can be sent to the recipient's Wise account. Still, users can receive the money in their regular bank accounts without registering an account on Wise.
Though the financial platform is excellent for personal transactions, business owners can also make use of sending and receiving money from abroad. Setting up a Wise business account only takes a few minutes.
Anyone in need of a convenient way to pay, receive or even spend money abroad will find great value in the services offered by Wise.
N26 is a mobile banking service made exclusively for European countries. Getting a standard account on N26 is free, with no paperwork needed. Their bank account also comes with a free virtual Mastercard debit card.
Thanks to N26 MoneyBeam, all transactions are processed instantly with a phone number or email. Money and customers' information are well protected on the platform by impressive security features like Mastercard 3D Secure and Biometric identification. Besides that, push notifications keep users up to date with every transaction in their account.
N26 packs excellent budgeting features to help users track their expenses and control spending.
Opening an account with N26 is free, but additional charges may apply depending on your country. For instance, N26 pricing in Germany is usually different from that of Austria and France.
N26 supports international transfers through its third-party partner, Wise. Wise is known for being one of the world's most reasonably priced international money transfer platforms.
N26 is for those looking to do mobile banking anywhere in Europe without worrying about outrageous bank charges. It is especially great for those who continually travel across Europe.
While N26 technically supports international transfers, it only does so through a third party and not by its own financial infrastructure.
It is undoubtedly one of the most popular international money transfer platforms. PayPal stays ahead of the competition through its high-speed transaction, ease of use, and ease of withdrawal, among others.
Users can easily load their PayPal accounts or debit/credit cards through their bank accounts. Payment can be withdrawn using the same avenue. Where PayPal really thrives, though, is its international transfer feature. The platform allows you to send money abroad instantaneously as long as the recipient also has a Paypal account.
While PayPal excels in its array of attractive features, one particular drawback worth mentioning is the fees. Fees on Paypal vary based on transaction types and volumes.
Overall, fees on Paypal can be as low as 4% and as high as 10% in some cases.
PayPal is for anyone looking to carry out smooth and ridiculously fast money transfers. So if you care about convenience and not so much about charges, then PayPal is for you.
Of course, there are a handful of countries where PayPal is not available. Therefore, endeavor to confirm that you and the recipient can use PayPal before proceeding.
When it comes to functionality, very few financial applications can compete with Cash App. As a result, many have referred to the app as five financial apps in one.
Cash App allows users to send and receive money directly, spend with debit cards, and even trade securities like stocks and bitcoins.
Requesting peer-to-peer payment is also possible on Cash App and is usually very straightforward.
Sending money using credit cards on Cash App incurs a 3% fee while sending money through a debit card is free. Transfers using bank accounts are also free.
Transfer of funds from Cash App to a linked debit card is instantaneous but costs 1.5 percent of the total transfer volume. However, transferring to a linked bank account is free but may take as long as 3 business days to complete.
Cash App is for people from the United States and the United Kingdom looking for more to do with their money. Thanks to Cash App, they can carry out basic financial transactions like sending money to friends and family while at the same time earning more through investing and trading securities.
While Venmo doesn't allow users to send money overseas, it nonetheless boasts several interesting features that ensure it remains appealing to many users in the United States, particularly Millennials.
Moreover, there is no shortage of Venmo alternatives to consider for international transactions. Apps and platforms such as OFX, Wise, XE, WorldRemit, Paypal, and Cash App are all viable options to send money internationally with varying functionalities and convenience.
One or more of these options can serve you well for card-funded transactions, large volume transactions, low volume transactions, and even peer-to-peer foreign exchange transactions.
In short, no matter what your money transfer needs are, we're confident you will find a service to suit your needs among the options above.