Use Cash App for quick US payments to friends and family, and PayPal if you sell things, shop online or pay people abroad. Both are free to send from a balance, a bank or a debit card, so the real differences are what you pay to cash out fast, to use a credit card and to send overseas.
Where these two split is at the edges of a payment: cashing out in a hurry, paying with a credit card, sending to another country and getting paid for something you sold. I read Cash App's terms of service, which carry its full fee table, and PayPal's US consumer and merchant fee pages, so every figure below comes from the two companies as of October 2026. These are US terms. PayPal users in the UK, Australia or Canada will see their own fee page.
Cash App and PayPal side by side
| Details as of October 2026 | Cash App | PayPal |
|---|---|---|
| Account and monthly fee | $0 | Buying with PayPal is free with no currency conversion |
| Send from balance, bank or debit card | $0 from balance or debit card | No fee from a PayPal balance or bank account |
| Send using a credit card | 3% | 2.90% plus a fixed fee for cards |
| Instant Transfer | 0.5%-2.5%, $0.25-$1 minimum, $75 maximum | 1.75%, $0.25 minimum, $25 maximum |
| Standard transfer | Free, typically 1-3 business days | No charge to a linked bank |
| Sending abroad | Remittance Service: $0 by bank transfer at $300 or more, $1.99 under $300 | 5.00% for international personal payments, 0.99 to 4.99 US dollars |
What Cash App charges and when
Cash App's terms list $0 to set up an account, $0 a month and $0 to send from your Cash App Balance or a debit card in the US. Paying with a credit card costs 3%. A standard transfer to your linked account is free and typically takes 1-3 business days. If you want it now, Instant Transfer costs 0.5%-2.5%, with a minimum of $0.25 to $1 and a maximum fee of $75, and Cash App shows you the exact fee at the time of the transaction rather than in advance.
The card is where the smaller charges sit. An ATM withdrawal costs $2.50, which Cash App reimburses in a month where you make $500 of qualifying purchases or receive $300 of qualifying deposits. Spending abroad carries a 3% Foreign Transaction Fee, waived on in-person card transactions in a qualifying month. Depositing paper cash at a store costs $1 per transaction. For family overseas, the Remittance Service charges $0 on a bank transfer of $300 or more and $1.99 below that, while a cash pickup costs $1.99 at $300 or more and $3.98 below.
What PayPal charges and when
PayPal's consumer fee page says buying with PayPal is free when there's no currency conversion, and sending a domestic personal payment from your PayPal balance or bank account has no fee. Fund it with a card and the fee is 2.90% plus a fixed fee. Sending a personal payment to another country costs 5.00%, with a minimum fee of 0.99 US dollars and a maximum of 4.99 US dollars.
Getting your balance out is free by standard transfer to a linked bank when no currency conversion is involved. Instant Transfer to a bank or an eligible debit card costs 1.75%, with a $0.25 minimum and a $25 maximum. PayPal also sets limits on instant transfers: up to $25,000 per transaction to a bank, and up to $5,000 per transaction, per day and per week to cards. A paper check costs 1.50 US dollars for personal accounts without a linked Balance account.
PayPal is built for selling. Its merchant fee page lists 2.99% for goods and services payments, and separate rates for business checkout tools, such as PayPal Checkout at 3.49% plus a fixed fee and QR code transactions at 2.29% plus a fixed fee. If you're comparing PayPal with a business processor, my Stripe vs PayPal comparison goes deeper on the selling side.
The catch: cashing out fast and paying abroad
Sending is free on both, so the charges land at the exits. PayPal's Instant Transfer is a flat 1.75% that stops at $25. Cash App's slides between 0.5% and 2.5%, can reach $75, and you only see your rate when you're about to move the balance. For anyone cashing out a large balance regularly, that difference adds up. Abroad, the picture flips: Cash App's Remittance Service is free on bank transfers of $300 or more, while PayPal's international personal payments cost 5.00% within its minimum and maximum.
Where your Cash App balance sits
Cash App's terms say it's a financial services platform, not an FDIC-insured bank. FDIC pass-through insurance only applies in set cases, such as holding a Cash App prepaid card. If you keep a large balance in the app, that's worth knowing before you treat it like a bank account. If you're unsure about the app itself, here's my look at whether Cash App is legit.
Which suits what
- Paying friends back and splitting bills in the US: either, as both are free from a balance or debit card.
- Cashing out a big balance today: PayPal, because its Instant Transfer fee stops at $25 while Cash App's can reach $75.
- Sending to family abroad by bank transfer: Cash App's Remittance Service, which charges $0 at $300 or more.
- Paying for something with a credit card: PayPal's 2.90% plus a fixed fee against Cash App's 3%, so check both before a big payment.
- Getting paid for goods and services, or taking payments online: PayPal, with its published selling rates and checkout tools.
My advice on Cash App or PayPal
For day-to-day payments to people you know in the US, use whichever app they already have, because both are free from a balance or debit card. If you sell anything, take payments from customers or pay people in other countries, PayPal is set up for it and its fees are published per payment type. And on either app, use the free standard transfer whenever you can wait a few days.
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Frequently asked questions
Does Cash App or PayPal charge less to send?
Both are free for domestic sending from a balance, and from a debit card on Cash App or a bank account on PayPal, as of October 2026. With a credit card, Cash App charges 3% and PayPal 2.90% plus a fixed fee.
What do Cash App and PayPal charge for Instant Transfer?
Cash App's terms list 0.5%-2.5% with a $0.25-$1 minimum and a $75 maximum. PayPal lists 1.75% with a $0.25 minimum and a $25 maximum.
Do Cash App and PayPal charge to send abroad?
PayPal charges 5.00% on international personal payments, with a minimum of 0.99 and a maximum of 4.99 US dollars. Cash App's Remittance Service charges $0 by bank transfer at $300 or more and $1.99 under $300.
Does PayPal charge to receive payment for goods?
PayPal's merchant fee page lists 2.99% for goods and services payments, with separate rates for checkout tools such as PayPal Checkout.
Is Cash App FDIC insured?
Cash App's terms say it isn't an FDIC-insured bank. Pass-through FDIC insurance only applies in set cases, such as holding a Cash App prepaid card.
Does PayPal limit Instant Transfers?
Yes. PayPal lists up to $25,000 per transaction to a bank, and up to $5,000 per transaction, per day and per week to cards.
