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GDPR Compliance Risk

Venmo is a US-based service subject to the CLOUD Act. EU organizations using this service risk non-compliance with GDPR data transfer requirements.

Venmo logo

GDPR-Compliant Alternative to Venmo

🇺🇸PayPal Holdings Inc. · US-based · Subject to CLOUD Act

Venmo is a mobile payment service that allows users to transfer money to friends and family instantly. Users can send and receive funds using their bank accounts, debit cards, or Venmo balance. The app also features a social feed that displays payment activity, offering a way to share transactions with contacts.

Why You Need a GDPR-Compliant Alternative to Venmo

Since the landmark Schrems II ruling in 2020, transferring personal data to US-based services like Venmo has become a significant legal risk for EU organizations. The US CLOUD Act gives American authorities the power to access data held by US companies, regardless of where that data is physically stored — even if it's in an EU data center.

While the EU-US Data Privacy Framework (DPF) adopted in 2023 provides a new legal basis for transfers, privacy experts and legal scholars have raised concerns about its long-term viability. The framework could face the same fate as its predecessors (Safe Harbor and Privacy Shield), both of which were struck down by the Court of Justice of the EU.

For organizations that want to eliminate compliance risk entirely, switching to a European-based payment & fintech is the most straightforward solution. Below are the best GDPR-compliant alternatives to Venmo, all headquartered in Europe with data stored in EU data centers.

CLOUD Act Exposure

US authorities can access your data stored by Venmo, even if servers are located in Europe.

GDPR Fine Risk

Non-compliant data transfers can result in fines up to 4% of annual global revenue under GDPR Article 83.

EU Alternative Available

1 GDPR-compliant European alternative available with full EU data residency.

1 GDPR-Compliant Alternative to Venmo

European services with full GDPR compliance and EU data residency

Wise logo

Wise

🌍

by Wise PLC

Wise by Wise PLC is an online money transfer service that allows users to send and receive money internationally at low fees. It uses real exchange rates to provide transparent pricing and enables users to hold multiple currencies in their accounts. Ideal for individuals and businesses looking to manage cross-border transactions efficiently.

GDPR CompliantEU-Based
freemiumMigration:●●●

Why switch?

  • Wise offers low transfer fees, often under 1% for international transfers.
  • Wise uses the real exchange rate, avoiding hidden markups on currency conversion.
  • Multi-currency accounts let you hold 50+ currencies for easy global transactions.

Consider

  • Venmo's social feed for payments is missing in Wise, reducing user engagement.
  • Migrating funds from Venmo to Wise can be cumbersome and time-consuming.
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Quick GDPR Compliance Comparison

ServiceHQ LocationGDPR NativeEU Data CentersCLOUD Act FreePricing
🇺🇸Venmo
United StatesNoPartialNofree
🌍WiseGBYesYesYesfreemium

Frequently Asked Questions

Is Venmo GDPR compliant?

Venmo is a US-based service operated by PayPal Holdings Inc.. While it may have some GDPR compliance measures, as a US company it is subject to the CLOUD Act, which allows US authorities to access data stored by US companies regardless of where the data is physically located. This creates a fundamental conflict with GDPR requirements for data protection.

What are the GDPR risks of using Venmo?

The main GDPR risks include: (1) Data transfers to the US may lack adequate protection since the Schrems II ruling invalidated Privacy Shield, (2) US authorities can demand access under the CLOUD Act, (3) Your organization may face GDPR fines up to 4% of annual revenue for non-compliant data transfers, and (4) User consent may not be sufficient to legitimize transfers given the systematic access by US authorities.

What are the best GDPR-compliant alternatives to Venmo?

The top GDPR-compliant alternatives to Venmo include Wise. These European services store your data in EU data centers and are fully subject to GDPR protections.

How do I migrate from Venmo to a GDPR-compliant alternative?

Most migrations involve three steps: (1) Export your data from Venmo using their data export tools, (2) Create an account with your chosen EU alternative, and (3) Import your data into the new service. We provide detailed migration guides for each alternative to make the switch as smooth as possible.

Can EU companies legally use Venmo?

Since the Schrems II ruling (2020), EU organizations face significant legal risk when using US cloud services like Venmo. While the EU-US Data Privacy Framework (2023) provides a new legal basis, its long-term stability is uncertain. Many EU data protection authorities recommend using EU-based alternatives to avoid compliance risks entirely.

Other GDPR Alternatives in Payment & Fintech

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Related Pages

Migration Resources

Some links on this page are affiliate links. We may earn a commission if you make a purchase, at no extra cost to you. This helps support our mission to promote European alternatives. Our recommendations are based on objective criteria.

Last updated: January 29, 2026