PayPal Q1 2026 total payment volume hit $464 billion, up 11% year-over-year at spot, while Block’s Cash App pulled in $2.91 billion in quarterly gross profit, up 26% year-over-year. The two apps now compete on increasingly different terrain: Venmo continues to scale a social-payments wallet, while Cash App is rebuilding itself as a primary checking account for its 59 million monthly users.
Comparing Venmo and Cash App on a single “who wins” axis has always been the wrong frame. The right frame is which metric you weigh: transaction footprint, per PayPal’s quarterly disclosure, favors Venmo; deposit-account behavior, per Block’s shareholder letter, favors Cash App.
Key Takeaways
- PayPal Q1 2026 TPV reached $464 billion, growing 11% year-over-year at spot, with Venmo TPV up 14% year-over-year for its sixth consecutive double-digit quarter.
- Cash App ended March 2026 with 59 million monthly transacting actives and 9.7 million Primary Banking Actives, up 18% year-over-year.
- Venmo is projected to hold 61.8% of US mobile P2P payment users in 2025, while Cash App is projected at 31%, per eMarketer and Insider Intelligence 2025 forecasts.
- 50% of Gen Z respondents use Cash App monthly, while 45% use Venmo weekly, according to a 2024 Morning Consult survey.
- The US mobile P2P market is forecast to reach $2.27 trillion in 2026, up 13.4% from 2025.
Editor’s Choice
- PayPal Q1 2026 TPV: $464 billion.
- Block Q1 2026 gross profit: $2.91 billion.
- Cash App monthly transacting actives (March 2026): 59 million.
- Cash App Primary Banking Actives (March 2026): 9.7 million (+18% YoY).
- Venmo 2025 revenue: $1.7 billion, up roughly 20% year-over-year.
- Cash App Consumer Lending origination (Q1 2026): $18.5 billion, up 69% year-over-year per Block’s Q1 2026 shareholder letter.
Recent Developments
- May 5, 2026: PayPal reported Q1 2026 TPV of $464 billion with Venmo TPV up 14% year-over-year, marking the sixth straight double-digit quarter.
- May 2, 2026: Block published its Q1 2026 shareholder letter showing Cash App 59 million monthly transacting actives and 9.7 million Primary Banking Actives, up 18% year-over-year.
- June 2, 2026: Block announced general availability of Afterpay on Cash App Card, letting customers split eligible purchases over $25 into two or four interest-free payments.
- Q1 2026: Cash App Consumer Lending origination volume grew 69% year-over-year to $18.5 billion.
- Q1 2026: Block raised its Q2 2026 outlook, guiding to gross profit of $3.04 billion (+20% YoY) and adjusted operating income of $740 million (+35% YoY).
Venmo vs Cash App User Counts
Venmo had approximately 113 million active users as of May 2026, while Cash App ended March 2026 with 59 million monthly transacting actives. The gap looks decisive at first read, but the two companies report on different bases: PayPal counts Venmo accounts that touched the app over a longer window, while Block reports a stricter monthly transacting definition. The closest like-for-like comparison comes from US user forecasts, where Cash App will reach 57.8 million US users in 2026, slightly above PayPal’s monthly active accounts attributed to Venmo in US-only data.
- Venmo: approximately 113 million active users as of May 2026.
- Cash App: 59 million monthly transacting actives in March 2026, up 4% year-over-year.
- Cash App Primary Banking Actives: 9.7 million, up 18% year-over-year.
- US users 2026 forecast: Cash App 57.8 million.
- Parent company context: PayPal monthly active accounts totaled 225 million in Q1 2026, up 1% year-over-year.
| App | Reporting Period | Headline User Count | Year-Over-Year Growth |
|---|---|---|---|
| Venmo | May 2026 | 113 million active users | n/a (Priori tracking) |
| Cash App | March 2026 | 59 million monthly transacting actives | +4% |
| Cash App (Primary Banking Actives) | March 2026 | 9.7 million | +18% |
| Cash App (US users forecast 2026) | 2026 forecast | 57.8 million | n/a |
| PayPal (parent) | Q1 2026 | 225 million monthly active accounts | +1% |
Source: PayPal Q1 2026 earnings release; Block Q1 2026 shareholder letter; Priori Data 2026; eMarketer 2025
Quarterly Payment Volume and Revenue
PayPal Q1 2026 TPV grew faster than the overall US P2P market: TPV reached $464 billion, up 11% at spot and 8% on a currency-neutral basis. Inside that number, Venmo TPV grew 14% year-over-year, the sixth straight quarter of double-digit growth, and Pay with Venmo TPV grew 34%. Block does not report Cash App TPV directly, but Block Q1 2026 gross profit reached $2.91 billion, up 26% year-over-year, and adjusted operating income grew 56% to $728 million.
- PayPal Q1 2026 TPV: $464 billion (+11% YoY at spot).
- Venmo Q1 2026 TPV growth: 14% YoY (sixth straight double-digit quarter).
- Block Q1 2026 gross profit: $2.91 billion (+26% YoY).
- Block Q1 2026 adjusted operating income: $728 million (+56% YoY).
- Venmo 2025 revenue: approximately $1.7 billion, up roughly 20% year-over-year.
- PayPal projects Venmo debit-card payment volume to grow at a CAGR above 20%.
| Metric | Venmo (PayPal segment) | Cash App (Block segment) |
|---|---|---|
| Q1 2026 TPV | +14% YoY (segment growth) | not disclosed |
| Parent Q1 2026 TPV | $464 billion | not disclosed |
| Parent Q1 2026 gross profit | not segment-broken | $2.91 billion |
| 2025 revenue | $1.7 billion | not separately disclosed |
| Adjacent metric | Pay with Venmo TPV +34% | Cash App Consumer Lending $18.5 billion (+69% YoY) |
Source: PayPal Q1 2026 earnings release, May 5, 2026; Block Q1 2026 shareholder letter, May 2, 2026; CNBC 2025
By the numbers: PayPal Q1 2026 results showed Venmo TPV up 14% year-over-year for a sixth consecutive double-digit quarter, with Pay with Venmo TPV up 34%. The pattern signals durable demand for a growing checkout footprint that extends beyond person-to-person transfers.
P2P Payments Market Share in the United States
Venmo is projected to hold 61.8% of US mobile P2P payment users in 2025, compared with 36.2% for Zelle and 31% for Cash App (the categories overlap because many users hold accounts on multiple apps). On a transaction-share basis, the picture is even more skewed: Venmo captured 81% of all US P2P digital wallet transactions in 2025. The market the two apps are fighting over keeps growing: the US mobile P2P payments market is forecast to reach $2.27 trillion in 2026, up 13.4% from 2025.
- Venmo US P2P user share 2025 (projected): 61.8%.
- Cash App US P2P user share 2025 (projected): 31%.
- Zelle US P2P user share 2025 (projected): 36.2%.
- Venmo US P2P digital wallet transaction share 2025: 81%.
- US mobile P2P market 2026 forecast: $2.27 trillion, 13.4% annual growth.
Single-app trackers offer a deeper drill-down here. The Venmo dataset isolates PayPal’s segment metrics, while the Cash App dataset breaks out Block’s PBA and Borrow growth on a quarterly basis.
For readers who want the wider category context, the P2P payment apps overview rolls Venmo, Cash App, Zelle, PayPal, and Apple Cash up against the same volume baseline. Bank-rail competitors split out in the Zelle vs Venmo comparison data for readers comparing wallet apps against bank-routed transfer rails.
Demographics: Who Uses Venmo and Who Uses Cash App
- Cash App user base aged 18 to 29: 45%.
- Cash App monthly actives from Gen Z (13 to 25): 38%.
- Venmo active users aged 25 to 34: 54%.
- Gen Z monthly Cash App use: 50%.
- Gen Z weekly Venmo use: 45%.
- Gen Z debit card preference over other methods: 63%.
| Demographic Slice | Venmo | Cash App |
|---|---|---|
| Dominant age cohort | Millennials (25 to 34): 54% of users | Gen Z (18 to 29): 45% of users |
| Gen Z monthly use | n/a | 50% |
| Gen Z weekly use | 45% | n/a |
| Gen Z share of monthly actives | not disclosed | 38% (ages 13 to 25) |
| Gen Z debit preference | 63% prefer debit over other methods | 63% prefer debit over other methods |
Source: Morning Consult 2024 payment-app survey; TD Cowen 2024 consumer survey (via Payments Dive)
The behavioral split is sharper than the demographic split.
- Cash App skews younger: 45% of its user base is 18 to 29, and 38% of monthly active Cash App users are from Gen Z (ages 13 to 25).
- Venmo skews slightly older, with millennials aged 25 to 34 making up 54% of its active users.
- 50% of Gen Z respondents use Cash App monthly, while 45% use Venmo weekly, per a 2024 Morning Consult survey.
Whichever cadence you weigh, monthly engagement or weekly engagement, produces a different “Gen Z winner,” which is why competitor articles disagree on basic facts here.
Key finding: Per TD Cowen’s 2024 consumer survey, Cash App leads Gen Z with 45% of its user base aged 18 to 29 and 38% of monthly actives from Gen Z, while Venmo’s Millennial concentration sits at 54% in the 25 to 34 cohort. The cohort split predicts product strategy: Cash App invests in Afterpay and Borrow; Venmo invests in checkout and card.
Debit Card Adoption and Direct Deposit
The card layer is where both apps are pulling the most monetization growth. Monthly active cardholders using the Venmo debit card rose about 40% in Q1 2025, with PayPal adding nearly two million first-time PayPal and Venmo debit card users in the quarter and total debit card payment volume up more than 60%. On the Cash App side, Cash App Primary Banking Actives (accounts receiving direct deposit or spending $500 or more per month across Cash App products) reached 9.7 million in March 2026, up 18% year-over-year.
- Venmo debit card monthly active cardholders Q1 2025: up roughly 40% YoY.
- Venmo + PayPal debit card payment volume Q1 2025: up more than 60%.
- PayPal first-time PayPal + Venmo debit card users added in Q1 2025: nearly two million.
- Cash App Primary Banking Actives as of March 2026 reached 9.7 million, up 18% annually.
- PayPal projects Venmo debit-card payment volume CAGR above 20%, with Pay with Venmo expected to grow approximately twice that rate.
| Card / Deposit Metric | Venmo | Cash App |
|---|---|---|
| Debit card growth signal | Monthly active cardholders +40% in Q1 2025; volume +60% | Card is included in PBA spending threshold of $500/month |
| Direct deposit metric | Not separately disclosed in segment reporting | Primary Banking Actives: 9.7 million (+18% YoY) in March 2026 |
| Forward projection | Debit volume CAGR projected above 20% | PBAs grew faster than overall MTAs (+18% vs +4%) |
| Product framing | “Pay with Venmo” pushes checkout | PBAs are the deposit-account funnel |
Source: CNBC reporting on PayPal Q1 2025; Block Q1 2026 shareholder letter; PayPal Q4 2025 earnings
Block’s PBA disclosure is the metric most coverage misses. Venmo does not break out an equivalent “primary banking” cohort, so the closest comparable for Venmo readers is the debit card growth trajectory PayPal calls out in its earnings releases.
Fees Compared: Venmo and Cash App
Both apps run a similar fee schedule for the basic person-to-person flow: free for standard transfers funded by a linked bank, and a fee for instant transfers funded by a debit card. The Venmo Teen Account charges a $2.50 fee for debit card withdrawals at non-participating ATMs; withdrawals at participating ATMs are free. Both apps charge a percentage fee on Instant Transfer to a bank or debit card, and both charge merchant processing fees when a personal account receives a business-tagged payment.
- Venmo Teen Account: free apart from a $2.50 ATM fee at non-participating ATMs.
- Standard transfers funded by linked bank: free on both apps.
- Instant transfers: percentage fee on both apps (Venmo ~1.75%, Cash App ~1.5, 1.75% depending on amount).
- Credit-card-funded P2P transfers: 3% fee on both apps.
- Merchant payments to a personal account: 1.9% + $0.10 on Venmo; 2.75% on Cash App for business accounts.
| Fee Type | Venmo | Cash App |
|---|---|---|
| Standard bank transfer | Free | Free |
| Instant transfer (to debit / bank) | ~1.75% (min $0.25, max $25) | 1.5%, 1.75% |
| Credit-card-funded transfer | 3% | 3% |
| ATM withdrawal | Free at participating ATMs; $2.50 at non-participating | Free with $300+ monthly direct deposit; $2.50 otherwise |
| Business account fee | 1.9% + $0.10 per transaction | 2.75% per transaction |
| Crypto trading fees | Network fee + spread | Network fee + spread |
Source: Venmo product documentation; Cash App product documentation
Safety, Fraud, and Consumer Protection
Payment-app fraud is a category-level problem rather than an app-specific one. The FTC’s Consumer Sentinel Network logged 90,571 payment-app fraud reports in 2024, with losses of $391 million, nearly double the prior year’s volume. The 2024 total sat inside a wider context where Americans lost over $12.5 billion to identity theft and fraud across all categories in 2024, up 25% from the previous year.
- FTC payment-app fraud reports 2024: 90,571.
- Payment-app fraud losses 2024: $391 million.
- Total identity theft + fraud losses 2024: over $12.5 billion, +25% YoY.
- Consumer Reports finding: none of Zelle, Venmo, Cash App, or Apple Cash fully reimburses users tricked into authorizing scam payments.
| Safety Dimension | Venmo | Cash App |
|---|---|---|
| 2FA / login security | Required; biometric supported | Required; biometric supported |
| Encryption | TLS in transit; FDIC pass-through on linked bank balances | TLS in transit; FDIC pass-through on linked bank balances |
| Authorized-payment scam reimbursement | Not fully reimbursed (Consumer Reports) | Not fully reimbursed (Consumer Reports) |
| Unauthorized-transaction reimbursement | Reg E protections apply | Reg E protections apply |
| Buyer protection on G&S tag | Yes | Yes |
Source: FTC Consumer Sentinel Network 2024; Consumer Reports digital wallet analysis
Authorized-payment scams: Consumer Reports found that none of the four major peer-to-peer payment apps (Zelle, Venmo, Cash App, and Apple Cash) fully reimburse users tricked into authorizing payments to scammers. The four apps treat authorized fraudulent transfers as transactions the consumer initiated, which leaves most scam victims without recourse. Treat any unsolicited “verify your account” message with maximum suspicion.
Cash App Borrow and the Afterpay BNPL Push
- Cash App Consumer Lending origination Q1 2026: $18.5 billion (+69% YoY).
- Afterpay on Cash App Card general availability: launched June 2, 2026; pilot ran across 20 states + DC from February 2025.
- Eligible purchase threshold for Pay-Over-Time: over $25, split into 2 or 4 interest-free payments every two weeks.
- Gen Z citing hidden fees, high interest rates, and financial stress as reasons for ditching credit cards: 63%.
- Gen Z who believe BNPL helps them manage finances better than traditional credit: more than half at 52%.
| Lending / BNPL Surface | Venmo | Cash App |
|---|---|---|
| Personal lending (origination) | Limited; PayPal Pay in 4 sits on PayPal side, not Venmo segment | $18.5 billion in Q1 2026 (+69% YoY) |
| BNPL on card purchases | Buy Now Pay Later TPV grew 23% YoY in Q1 2026 (PayPal segment, not Venmo-specific) | Afterpay generally available on Cash App Card from June 2, 2026 |
| Threshold for splitting | n/a on Venmo | Over $25 per purchase |
| Target demographic | Millennials + Gen Z | Gen Z (63% have moved away from credit cards) |
Source: Block Q1 2026 shareholder letter; BusinessWire Block press release June 2, 2026; Cash App Afterpay Morning Consult survey April 2025
Cash App’s lending products are the headline gap between the two apps’ product surfaces. Block layered a BNPL surface on top of that lending base, and the strategy is Gen Z aimed.
- Cash App Consumer Lending origination volume reached $18.5 billion in Q1 2026, up 69% year-over-year.
- On June 2, 2026, Block announced general availability of Afterpay on Cash App Card, letting eligible customers split purchases over $25 into two or four interest-free payments every two weeks.
- A Cash App Afterpay survey conducted by Morning Consult found nearly two-thirds of Gen Z have moved away from credit cards, with 63% citing hidden fees, high interest rates, and financial stress as reasons, and more than half (52%) believe BNPL helps them manage finances better than traditional credit.
Pay with Venmo TPV grew 34% in Q1 2026, so the gap between the two product surfaces is narrower at the rails layer than at the consumer-lending layer. The right comparison is “lending plus checkout” on the Cash App side versus “checkout plus debit” on the Venmo side.
Venmo Teen Account and Cash App for Kids
A Venmo Teen Account enables 13-17-year-olds to use selected Venmo features while a parent or guardian retains visibility and control of the overall account, including a Venmo Teen Mastercard debit card. A Venmo Teen Account is free apart from a $2.50 fee for debit card withdrawals at non-participating ATMs, with withdrawals free at participating ATMs. Cash App’s equivalent youth product launched as Cash App for Families and lets accountholders aged 13 and up open a sponsored account with parental controls.
- Venmo Teen Account age range: 13 to 17.
- Venmo Teen ATM withdrawal fee at non-participating ATMs: $2.50.
- Venmo Teen card type: Venmo Teen Mastercard Debit Card.
- Cash App youth product (Cash App for Families): 13+ with parent sponsorship.
- Both apps include parental visibility into transactions.
Best for teens: For parents who want a Mastercard-branded debit card and a clear ATM fee schedule, the Venmo Teen Account is the safer first deployment. Cash App for Families is the lighter onboarding choice when the teen is primarily sending and receiving allowance money and does not need ATM access.
Tax Reporting and the $600 Rule for Both Apps
Under IRS rules, third-party settlement organizations including Venmo, Cash App, and PayPal must report user gross payments for goods and services on Form 1099-K once thresholds are exceeded: $5,000 for calendar year 2024, $2,500 for 2025, and $600 for 2026. The threshold applies only to payments tagged for goods and services. Personal transfers between friends and family are not reportable, which is why both apps separate “send to a friend” from “pay for something” flows.
- 1099-K threshold calendar year 2024: gross payments over $5,000.
- 1099-K threshold calendar year 2025: gross payments over $2,500.
- 1099-K threshold calendar year 2026: gross payments scheduled at $600.
- Threshold applies to goods-and-services payments only; personal transfers excluded.
- Both apps issue Form 1099-K to qualifying users and provide downloadable transaction history.
Side-by-side, the $600 threshold is the single regulatory dimension where Cash App and Venmo behave identically: the IRS rule does not care which app processed the payment, only that it was tagged for goods or services and crossed the threshold. The practical implication is that side hustles and small-business users should expect a 1099-K on either platform in 2026.
Verdict by Use Case
- Gen Z monthly engagement: Cash App wins at 50% monthly use vs Venmo’s 45% weekly use among Gen Z (Morning Consult 2024).
- Weekly social transfers: Venmo wins on the 45% Gen Z weekly cadence and merchant checkout footprint.
- Direct deposit and primary banking: Cash App wins with 9.7 million PBAs (+18% YoY).
- Checkout footprint: Venmo wins on Pay with Venmo TPV growth of 34% YoY in Q1 2026.
- Small-business volume: Venmo wins on the lower 1.9% + $0.10 business fee vs Cash App’s 2.75%.
- Best for Gen Z monthly engagement: Cash App, where 50% of Gen Z respondents use it monthly per Morning Consult’s 2024 survey, plus the Afterpay BNPL surface that targets the cohort directly.
- Best for weekly social transfers: Venmo, where 45% of Gen Z respondents use it weekly and the social feed plus emoji-tagged transfers preserve the original P2P use case.
- Best for direct deposit and primary banking: Cash App, given 9.7 million Primary Banking Actives in March 2026, up 18% year-over-year.
- Best for checkout footprint: Venmo, where Pay with Venmo TPV grew 34% in Q1 2026 and merchant acceptance benefits from PayPal’s existing rails.
- Best for small-business volume: Venmo handles the business-account flow at a lower percentage fee (1.9% + $0.10) versus Cash App’s 2.75% for business accounts, while Cash App’s Square POS integration is the stronger choice for a brick-and-mortar storefront.
Conclusion
PayPal Q1 2026 TPV reached $464 billion, and Venmo TPV grew 14% for a sixth consecutive double-digit quarter, while Block’s Cash App posted $2.91 billion in gross profit on a 59 million monthly active base with 9.7 million Primary Banking Actives. The headline winner depends on which metric earns the most weight: transaction footprint and merchant checkout favor Venmo; deposit-account behavior, consumer lending, and Gen Z monthly engagement favor Cash App.
Across the next year, the gap to watch is whether Venmo’s Pay with Venmo and debit-card layer narrow Cash App’s lead on primary-banking behavior, or whether Cash App’s Afterpay and Borrow surfaces continue pulling Gen Z spend deeper into Block’s stack. We will track the QR codes layer alongside the Q2 and Q3 2026 quarterly results as each company reports.
