Cybersecurity 
Penetration testing, also referred to as pen testing, is a simulation of a cyber attack that organizations conduct to identify security vulnerabilities within their systems. By
4 min read
Published on November 15, 2024
PayPal is more secure than Venmo because it has advanced fraud detection, supports passkeys, features strong protection programs for buyers and sellers and has a better track record for overall security. Both Venmo and PayPal are mobile payment apps that you can use to send and receive money, but they tend to be used in different ways. Venmo allows you to request money from people you know and from strangers, or you can split bills when going out with friends. PayPal is more often used for secure online shopping, creating automatic payments and sending money to friends or family.
| Feature | Venmo | PayPal |
|---|---|---|
| Encryption | Uses encryption to protect transactions and personal information | Uses advanced encryption and fraud detection |
| Two-Factor Authentication (2FA) | Offers two-factor authentication | Offers two-factor authentication |
| Passkey support | Does not currently support passkeys | Supports passkeys |
| Purchase protection | Limited purchase protection for eligible purchases | Strong protection programs for buyers and sellers |
| Locations/currencies offered | Domestic money transfers only within the United States | Over 200 countries and 25 international currencies |
| Fraud monitoring | Limited fraud monitoring capabilities | Sophisticated fraud detection and monitoring systems |
| Policies and support | Less comprehensive policies and support for addressing unauthorized access, chargebacks and security issues | More comprehensive policies and support for handling security incidents |
| Overall security reputation | Often seen as having weaker security than PayPal | Strong reputation and track record for security |
Continue reading to learn why PayPal is safer to use than Venmo, how you can stay safe from scams on both platforms and ways to secure your online payment accounts.
How is PayPal safer than Venmo?
PayPal is safer than Venmo for a variety of reasons:
- PayPal uses a more advanced encryption system than Venmo and detects fraud to enhance the security of your transactions.
- Although both Venmo and PayPal use Two-Factor Authentication (2FA), only PayPal supports passkeys, which are phishing-resistant and rely on biometrics, swipe patterns or PINs to access your account.
- As a buyer or a seller, your purchases will be protected better on PayPal than on Venmo because Venmo offers limited protection on select purchases.
- Venmo is limited to users within the United States, while PayPal can be used for both domestic and international transactions in over 200 countries.
- PayPal’s policies are more comprehensive than Venmo’s, and PayPal offers more support for a wider range of security incidents, whereas Venmo has minimal support for unauthorized charges and chargebacks.
- Even though both Venmo and PayPal have suffered data breaches in recent years, PayPal retains a stronger reputation based on their transaction security, fraud monitoring and web browser integrity checks.
Despite PayPal being safer than Venmo, you can run into scammers on both mobile payment apps. It’s important to be cautious about whom you complete transactions with on both Venmo and PayPal, especially if you’re selling or purchasing items or services from strangers.
How to stay safe from scams on PayPal and Venmo
Although there are scammers on both platforms, you can protect yourself from common scams on Venmo and PayPal by doing the following:
- Only send and receive payments from people you trust because transacting with strangers could result in financial loss. A stranger could trick you into sending them money for an item that doesn’t exist, so make sure to only use Venmo and PayPal with people you know in real life.
- Link your Venmo and PayPal accounts to your credit card instead of your debit card. Since credit cards have better protection policies and are responsible for repaying any fraudulent charges, you should link your credit card to your Venmo and PayPal accounts. However, using your credit card on Venmo and PayPal will result in an additional 3% fee.
- Avoid leaving large amounts of money in your Venmo and PayPal accounts because any money stored in these apps is at risk of being stolen in a potential data breach. It’s much safer to transfer any funds in your Venmo or PayPal account to your bank account if you don’t need the money immediately to make a payment.
- Stay informed on the latest scams on both Venmo and PayPal to learn how to avoid falling victim to them. By learning about the most popular phishing attacks and fake payment scams, you will know what to look out for when using these payment apps.
- Be cautious of phishing scams involving scammers impersonating Venmo and PayPal. If you receive an email claiming to be from either app but it uses urgent language or requests personal information, report the message and block the illegitimate sender.
How to secure your Venmo and PayPal accounts
Secure your Venmo and PayPal accounts by using strong and unique passwords, enabling Multi-Factor Authentication (MFA), setting up PINs or biometrics and paying attention to security notifications about suspicious activity.
Use strong passwords
Make sure to use a strong password for each of your online accounts, especially your Venmo and PayPal accounts. A strong password consists of at least 16 characters with a combination of uppercase and lowercase letters, numbers and symbols. Do not use the same password for both your Venmo and PayPal accounts – or any other online account – because once a cybercriminal cracks one of your passwords, they will use it to try to gain access to your other accounts in credential stuffing attacks.
Another sign-in method you can use on PayPal is a passkey. Although Venmo doesn’t offer support for passkeys, you should enable a passkey on your PayPal account for enhanced protection against unauthorized users. Since a passkey is a passwordless authentication method, a cybercriminal cannot access your PayPal account if you have a passkey enabled because they cannot replicate your fingerprint or Face ID.
Enable Multi-Factor Authentication (MFA)
In addition to using strong and unique passwords for your Venmo and PayPal accounts, you should enable Multi-Factor Authentication (MFA) for an extra layer of security. MFA is a security measure that requires you to verify your identity by providing another proof of authentication. Even if your Venmo or PayPal login credentials were compromised, a cybercriminal could not access your account if you enabled MFA since they would need something that is unique to your identity. Some types of MFA include a PIN, an answer to a security question, biometrics, a code from an authenticator app or a passkey.
Set up PINs or biometrics
You should set up a PIN or biometric authentication on your Venmo and PayPal accounts for extra security. On your Venmo account, you can set these up by going to your profile, and then Settings. Select Face ID & Passcode, and toggle on Enable Face ID & Passcode. This will prevent anyone who does not have your face scan or know your passcode from opening your Venmo app to complete transactions.
To set up a PIN or biometrics in PayPal, log in to your account, and you will see an option to Create a passkey. Click Next to continue, review the details and give PayPal permission to use a passkey. If you use PayPal on an iPhone, you can set up Face ID, Touch ID or a passcode. If you use an Android device, you can use a face or fingerprint scan, PIN or swipe pattern, depending on which device lock you have set up. Once you choose your form of passkey, you will be redirected to your PayPal home screen.
Pay attention to security notifications
Be sure to enable and monitor security notifications from Venmo and PayPal because these apps will notify you if any suspicious activity or fraudulent transactions occur. Customize what notifications you receive from Venmo by visiting your profile, selecting Settings and tapping Notifications. Choose whether you would like to receive push, text and/or email notifications.
On PayPal, visit your profile and tap Notification preferences. Select which notifications you want to receive by email and/or text (if you’ve had a problem with a payment, if someone is requesting money from you or if you are receiving a payment). These notifications are helpful if a scammer is frequently requesting money from you because they make it easier to report fraudulent users or transactions.
Stay safe on Venmo and PayPal
Regardless of which mobile payment app you use, you must protect your Venmo and PayPal accounts to avoid becoming a victim of cyber attacks or fraud. Although PayPal is safer to use than Venmo, you should be aware of common scams on both apps and only make transactions with people you trust. To protect your Venmo and PayPal accounts, use strong passwords and store them in a secure location like a password manager. Keeper Password Manager can help you create, update and store your Venmo and PayPal login credentials, including passkeys and other MFA methods.
Start your free 30-day trial of Keeper Password Manager to better protect your Venmo and PayPal accounts from scammers.
