There is no single "best" payment app — the right one depends on who you're sending money to and what you're trying to avoid
A payment app is software on your phone that moves money from your bank account or card to someone else's account, usually in minutes. The app that works best for you depends on three things: whether the person you're paying uses the same app, whether you need to send money to someone without a bank account, and what fees matter most to your situation.
If you're sending money to a friend who also has the app, most major apps are free and nearly when ready. If you're paying a business, some apps charge a fee unless you pay from your bank account directly. If you're sending money to someone who doesn't have a bank account at all, only certain apps will work. This section walks you through how to think about which app fits your actual needs.
Key Takeaways
- Apps that both people already use are almost always free and fastest, so ask the person you're paying which app they prefer before downloading a new one.
- Sending money to a bank account usually costs nothing if you use a debit card, but costs a percentage fee if you use a credit card.
- Apps designed for people without bank accounts, like Walmart2Walmart or MoneyGram, work differently and may cost more but reach more people.
- Your bank's own app is often free for transfers to other accounts at the same bank, but slower for transfers to other banks.
Apps where both people need the same app (peer-to-peer apps)
Peer-to-peer apps let you send money directly to another person's account within that app. The most common ones are Venmo, Cash App, PayPal, and Zelle. These are free when you send money from your bank account or debit card, and the money usually arrives within minutes to a few hours.
The catch is that both people need to have the same app. If your friend uses Venmo and you use Cash App, you cannot send money directly between them. You would have to transfer money out of Cash App to your bank account first, then transfer it into Venmo — which takes longer and defeats the purpose.
Before you read a new app, ask the person you're paying which one they already use. If they use Venmo, use Venmo. If they use Cash App, use Cash App. You will save time and avoid confusion. If you do not know, Zelle is built into most major banks' apps, so it is often already on your phone without you realizing it.
Apps that send money to any bank account
If the person you're paying does not use a peer-to-peer app, or if you're paying a business, you can use an app that sends money to any U.S. bank account. PayPal, Square Cash, and your own bank's app all do this. The money usually takes one to three business days to arrive.
These transfers are free if you send from your bank account or debit card. If you send from a credit card, most apps charge a percentage fee — usually around 2 to 3 percent. That means sending $100 from a credit card costs you $2 to $3 extra. If you have a choice, always send from your bank account or debit card to avoid the fee.
Your bank's own app is often the simplest route if you're sending to another account at the same bank — the money may arrive the same day. For sending to a different bank, the speed is usually the same across apps, so pick whichever one you already have.
Apps for people without bank accounts
If you're sending money to someone who does not have a bank account, peer-to-peer apps will not work because they require a bank account to receive money. Instead, you use apps or services that let the other person pick up cash at a store or receive money on a prepaid card.
Walmart2Walmart and MoneyGram are the most common. You send money through their app or website, and the other person goes to a Walmart or MoneyGram location to pick up the cash. These services charge a fee — usually $5 to $15 depending on how much money you're sending — and the money is usually ready within minutes to a few hours.
Some peer-to-peer apps like Cash App and PayPal also let you send money to a prepaid card instead of a bank account, which can work if the other person has one. But if they have neither a bank account nor a prepaid card, Walmart2Walmart or MoneyGram are your main options.
What to consider when choosing between apps
Start by asking yourself: Does the person I'm paying already use an app? If yes, use that app. If no, ask them which one they prefer or which one they have access to. This single question solves most of the decision.
If you're paying a business or someone who does not have a preference, consider whether you want the money to arrive today or if a few days is fine. Peer-to-peer apps are faster. Bank transfers are slower but just as free. If speed matters and you do not know the person's app preference, Zelle is usually fastest because it is built into most banks.
Finally, check whether you will be sending from a credit card. If you will, avoid apps that charge a percentage fee on credit card transfers. Use your bank account or debit card instead, or use an app like Zelle that does not charge a credit card fee.
Apps designed for regular bill payments
If you're paying the same person or business regularly — like rent, a contractor, or a utility company — a payment app might not be the best tool. Many landlords, contractors, and companies have their own payment systems that are free and automatic.
Before you set up a payment app, check whether the person or company you're paying has a website where you can pay directly. Many landlords accept payments through their property management company's portal. Utilities usually have a bill pay option on their website. Contractors often have a preferred payment method. Using their system is usually faster and creates a record they can see when ready.
If they do not have their own system, then a payment app is the right choice. But if they do, their system is usually simpler and more reliable than routing money through a third-party app.
Security and privacy on payment apps
Payment apps store your bank account or card information, so it matters which app you trust. All major apps — Venmo, Cash App, PayPal, Zelle, and others — use encryption to protect your information, which means your account details are scrambled so hackers cannot read them.
One thing to know: on some apps like Venmo, your payment history is visible to other users by default. If you send money to a friend, other Venmo users can see that you sent money to that person, though they cannot see the amount or reason unless you make it public. If you want privacy, change your settings to "private" so only you and the person you paid can see the transaction.
Never share your password or PIN with anyone, and never send money to someone you do not know. If someone asks you to send money through a payment app and you do not know them, it is almost always a scam.
Frequently Asked Questions
Can I use a payment app if I do not have a bank account?
Most peer-to-peer apps require a bank account or debit card to send money. However, some apps like Cash App and PayPal let you add a prepaid card instead. If you do not have either, you can still receive money through these apps — the sender just needs to have an account. To send money yourself without a bank account, use Walmart2Walmart or MoneyGram, which let you pay with cash at a store.
Why does my payment app charge a fee sometimes and not other times?
Most apps charge a fee only when you send from a credit card. Sending from a bank account or debit card is free. Some apps also charge a small fee if you want the money to arrive the same day instead of waiting one to three business days. Check your app's fee schedule before you send to see what will be charged.
How long does money take to arrive?
Peer-to-peer transfers between people using the same app usually arrive within minutes to a few hours. Transfers to a different bank account take one to three business days. Walmart2Walmart and MoneyGram are usually ready within minutes to a few hours. If you need money to arrive today, ask the person you're paying which app they prefer — same-app transfers are fastest.
Is it safe to use a payment app?
Major payment apps use encryption and fraud protection, so your account is reasonably safe if you use a strong password and do not share your PIN. The biggest risk is sending money to someone you do not know or to the wrong person by mistake. Once you send money, you usually cannot get it back. Only send to people you trust.
What if I send money to the wrong person?
Contact the app's customer service when ready and explain the mistake. Some apps can reverse the transaction if the other person has not withdrawn the money yet. If they have already withdrawn it, you will need to contact that person directly and ask them to send the money back. This is why it is important to double-check the recipient's name before you hit send.