Does Venmo Work in Canada in 2024? The Complete Lowdown
As a payments expert, one of the most common questions I‘m asked is: "Does Venmo work in Canada?"
Venmo has become hugely popular for quick, convenient peer-to-peer payments in the US. Naturally, people want to know whether they can use it when traveling or moving to Canada.
The short answer is no—unfortunately, Venmo does not work whatsoever in Canada as of 2023.
In this detailed guide, I‘ll explain exactly why Venmo has remained restricted to the US market despite its PayPal ownership.
I‘ll also showcase some stellar payment app alternatives available now in Canada. Lastly, I‘ll compare the best ways to transfer money from the US into Canadian bank accounts.
Why Venmo Stays Locked to the US Market
Venmo launched back in 2009, designed specifically to facilitate digital payments between friends and family within the US market.
Over a decade later, despite rapid growth to over 80 million users, their service still does not function for any payments or transactions in Canada.
But why hasn‘t PayPal expanded its immensely popular peer-to-peer payments app north of the border?
Complying with Regulations
One major barrier is the regulation of money transfers and payments in Canada—which differs substantially from equivalent US rules.
Payments regulation in Canada falls under the umbrella of the Payments Canada organization. They oversee all electronic funds transfers, payment item processing, and core infrastructure.
To launch in Canada, Venmo would have to navigate and comply fully with the Canadian Payment Act and bylaws enacted by Payments Canada.
This includes things like transaction reporting requirements, consumer privacy policies, and anti-money laundering regulations. All would require significant legal and technical investment to conform with.
Adapting to Interac e-Transfer System
Another obstacle is integrating properly with Canada‘s unique Interac e-Transfer system.
Over 90% of digital money transfers in Canada flow through the Interac network architecture and platform protocols.
Interac e-Transfer utilizes proprietary messaging formats and communication protocols between Canadian financial institutions.
Integrating money transfers through Interac would be a major technical challenge for Venmo, requiring considerable development resources.
| Payment Network Statistics 2022 | United States | Canada |
|---|---|---|
| Core Bank Transfer System | FedACH | Interac e-Transfer |
| Bank Transfer Volume | ~27 billion/year | ~1 billion/year |
| Average Transfer Fee | $0-$4 | Up to $1.50 |
Strategic Focus Remaining on US Market
As a subsidiary of PayPal, Venmo‘s core strategic priority is cementing dominance in the US peer-to-peer payments sector.
In the US, Venmo processes over $240 billion in payment volume annually as of 2022. Impressively, that figure has been doubling year-over-year.
With so much growth still achievable within the US, launching overseas in Canada may be a secondary priority for Venmo right now.
Top Payment App Alternatives to Use in Canada
Despite no Venmo access, Canadians still have some excellent digital payment options:
1. Interac e-Transfer (Built-In Bank Functionality)
As mentioned above, Interac e-Transfer allows direct bank account transfers between most major Canadian financial institutions.
It‘s integrated right into your online banking platform—no separate app required!
Over 76% of Canadian smartphone users regularly utilize Interac e-Transfer for peer-to-peer payments.
Key Features:
- Direct bank account transfers
- Free between accounts at same bank
- Up to $1.50 fee for external transfers
- Funds delivered within 30 minutes
2. Wealthsimple Cash
Wealthsimple Cash has aimed to become the "Venmo of the North" within Canada.
It allows fast peer-to-peer money transfers directly from Canadian bank accounts. You can also obtain a Wealthsimple Cash Visa card for payments.
In 2021, Wealthsimple Cash handled $1.4 billion in transactions after just two years from launch.
Key Features:
- No fees for standard bank transfers
- Instant transfers between WSC accounts
- Free Wealthsimple Cash Visa card
- Supports Interac e-Transfer
3. PayPal Canada
Given PayPal‘s ownership of Venmo, it‘s the most direct payments alternative for similar functionality.
PayPal facilitates money transfers between both US and Canadian accounts in USD and CAD currency.
As of 2022, PayPal has around 6.7 million active Canadian users.
Key Features:
- Send/receive funds from US/Canada
- FDIC and CDIC insured account balances
- Link Canadian bank accounts for easy transfers
- Industry-leading fraud protection
Cost-Effective Ways to Transfer Money from US to Canada
Canadians have excellent payment apps to use domestically. But what‘s the most cost-effective way to move funds from the US up to Canada?
Based on typical $500 transfer, here‘s how the top 4 options stack up:
| Money Transfer Service | Delivery Speed | Transfer Fee | Exchange Rate Margin | Total Cost |
|---|---|---|---|---|
| PayPal | 1 business day | $0 CAD | 2.5% | ~$12.50 CAD |
| Wise (TransferWise) | 1-2 business days | $0.74 CAD | 0.68% | ~$5 CAD |
| WorldRemit | Same/next day | $3.99 CAD | 0.0% | $3.99 CAD |
| Banks | 1-5 business days | $5-$45 CAD | 2-4% | $10-$50+ CAD |
As you can see, Wise (formerly TransferWise) clearly offers the most cost-effective way to send money abroad into Canadian accounts.
PayPal would still be the optimal service if you need to transfer an existing US Venmo balance. But for ongoing remittances or international payments, I highly recommend checking out Wise.
Their money transfer rates are unmatched, with both low flat fees and nominal currency conversion margins.
The Bottom Line
While Venmo won‘t operate for any transactions up in Canada currently, there are still great payment options available. Services like Wealthsimple Cash and Interac e-Transfer have specifically been designed around Canadian banking needs.
And for getting funds from the US over to Canada, Wise provides a reliably fast and inexpensive money transfer solution.
Hopefully this guide has helped explain why Venmo remains a US exclusive. But thankfully, Canadian payment methods continue to rapidly progress and innovate!
Please let me know if any other questions come up!
