The Best Way to Send and Receive Money in 2021

We’ve uncovered the best way to send and receive money in 2021. Sending money to friends and family is easier than ever today. You have multiple apps at your disposal that make it easy to send funds fast. Understanding the pros and cons of each app and what you should consider is important. We’ll help you with this article to get started.

Cash App

Cash App is a simple to use money transfer app that offers a few other benefits besides sending and receiving funds. Users get a free debit card, access to exclusive deals (Cash Boosts), and can invest in stocks or cryptocurrency. Run by Square, Cash App is free for both the sender and recipient, but both parties must have the Cash App to make it work.

If you plan to open a Cash App account, make sure to sign up with a Cash App referral code and receive up to $15 free sign-up bonus for trying the app.
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Cash App Pros and Cons

ProsCons
  • Transfers are free with a debit card or checking account
  • You can transfer funds to your checking account for free if you wait 1 – 3 business days for the funds
  • You can customize your debit card
  • You can store the funds in your Cash App account or transfer them out
  • You can receive direct deposit funds send to your Cash App account up to 2 days early
  • $10 sign-up referral bonus
  • You’ll pay a 1.5 percent instant transfer fee if you can’t wait 1 – 3 business days for the funds
  • Senders pay a 3 percent fee to send money with a credit card
  • Cash App has strict sending and receiving limits starting at just $250 a week (sending) if you have an unverified account

Venmo

Venmo is an easy to use ‘social app’ payment service. You can send and receive money from your Venmo account or linked debit card/checking account. You can also link a credit card, but there are fees involved. Venmo makes it ‘fun’ to send and receive funds with its social media feed where you can text friends and family requesting money, dressing it up with emojis to lighten the mood.

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Venmo Pros and Cons

ProsCons
  • It’s free to send and receive funds as long as you use a debit card or checking account
  • You can transfer funds for free if you wait 1 – 3 business days for the funds
  • Recipients receive funds for no charge
  • Many retailers accept Venmo, making it easy to pay for goods and services with your phone (contact-free)
  • The app is user-friendly and great for even beginners
  • You’ll pay a 1.5 percent instant transfer fee if you need the funds right away
  • Senders pay a 3 percent fee if they send money with a credit card
  • Before you verify your account, you’ll have a $299.99 weekly spending limit

Paypal

Most people know PayPal for its online payment system, or even the ability to accept payments for your side hustles. It’s also a strong contender in the mobile payment app arena. You can send and receive payments from friends and family like most other payment apps. PayPal has history and stability on its side, but like most payment apps, both parties need PayPal to exchange funds.

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Paypal Pros and Cons

ProsCons
  • It’s free to send and receive funds as long as you choose the ‘friends and family’ option
  • You can ‘pool funds’ for a common matter from even non-PayPal users (like GoFundMe)
  • PayPal has history and security on its side
  • You can send up to $10,000 in one person-to-person transaction
  • You can send money anywhere in the world
  • PayPal charges a 1% (up to $10) fee for an instant transfer to your bank account, otherwise, you wait 1 – 3 business days
  • PayPal charges a hefty 2.9% plus $0.30 per credit card transaction
  • Both parties need PayPal to send funds

Zelle

Zelle is an app that’s integrated into most bank’s mobile apps. If you activate Zelle within the app, you’re ready to send and receive money from friends and family. If your bank has Zelle, you don’t need to download the app. If your bank doesn’t use Zelle, then you will, but it’s easy.

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Zelle Pros and Cons

ProsCons
  • Funds go directly from the sender’s bank account to the recipient’s; you don’t have to worry about transferring funds to your bank account
  • Zelle is completely free for both senders and recipients
  • All you need is the recipient’s email or phone number to send money
  • Since Zelle works through your bank’s app, you may have a higher level of security
  • Zelle offers live customer support – most payment apps only have knowledgebases for users to get answers
  • If the sender or receiver’s bank doesn’t offer Zelle, the transfer can take up to 3 business days
  • The transfer limit varies by bank, but if your bank doesn’t have Zelle, the limit is $500 per week
  • Zelle is strictly a payment app, it has no other features

Facebook Pay

If you don’t want to download a payment app, you can use Facebook Pay to send and receive funds for free. Both parties must have a debit card for it to work and it takes just a few seconds to send or receive money.

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Facebook Pay Pros and Cons

ProsCons
  • You can link your debit card or PayPal account to send and receive money instantly
  • You can transfer up to $9,999.99 per transaction
  • You can send money to anyone you’re connected to on Facebook Messenger
  • There’s no app to download or information to share once you link your debit card or PayPal account
  • It’s user-friendly
  • Banks take up to 5 business days to accept or send the funds (each bank varies)
  • Not everyone has access to Payments in Facebook Messenger (you can email support to find out why)
  • It may not be as secure as other payment apps

Google Pay

Google Pay is a part of the Google Wallet making it easy to not only have contactless payments but also pay friends and family quickly. You can split the bill with a group or send money to individuals within seconds.

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Google Pay Pros and Cons

ProsCons
  • It’s easy to pay anyone in your contacts or you can scan their personal QR code
  • You can invite users to Google Pay if they aren’t already signed up
  • The system is user-friendly and looks like a text message conversation
  • Google uses two-factor authentication to protect your money and privacy
  • It could take up to 3 – 5 business days for the money to hit the bank account
  • Both parties need Google Pay for the transaction to complete

Apple Pay

Apple makes it easy to send and receive funds from friends and family who also have an Apple device. The process takes place in the messaging app – just click the button next to the camera and click on ‘Apple Pay.’ You can choose to send or request funds. You follow the prompts and complete the transaction.

pay-with-apple-pay

Apple Pay Pros and Cons

ProsCons
  • You can send or receive funds using any Apple device (smartphone, smartwatch, or tablet)
  • It takes just a minute to send or receive funds
  • There’s no cost to send or receive funds
  • You may receive funds instantly if you link an eligible Visa debit card
  • It takes 3 – 5 business days for the funds to transfer from your Apple Pay account to your bank account
  • Both parties need an Apple device and to enable Apple Cash to send/receive payments

Xoom

Xoom is an offshoot of PayPal. It’s the ‘speediest’ way to send cash either straight to a person’s bank account or for cash pickup. Xoom updates you on the progress along the way with text messages, and you can get live customer support if you have questions.

what-is-xoom

Xoom Pros and Cons

ProsCons
  • You can send money to any bank account worldwide
  • You can send money for pickup at partner retail locations
  • Xoom uses extensive encryption techniques to ensure your information is safe
  • They offer a money-back guarantee if your money isn’t sent or received
  • The fees are high; Xoom charges between $2 - $6 per transaction
  • Xoom sometimes cancels transactions with no explanation

Samsung Pay

Samsung Pay is another digital wallet that allows peer-to-peer payments in addition to contactless payments. It’s easy to use and you can pay any contacts already in your phone, sending money in seconds.

pay-with-samsung-pay

Samsung Pros and Cons

ProsCons
  • You can pay contacts instantly or enter a phone number to manually pay someone
  • You can send a message with the funds to thank the recipient or send any other message
  • You can use Samsung Pay on a smartphone or smartwatch
  • Samsung Pay uses bank-level security
  • You can only send as much money as you have on your Samsung Cash Card
  • Not all banks work with Samsung Pay

Bottom Line

Pay close attention to a payment app’s features and security, as well as the pricing. Sending and receiving money shouldn’t cost you an arm and a leg and it shouldn’t take forever to get the funds into your checking account. The apps mentioned here are user-friendly, affordable, and transfer funds fast.