Do I pay zakat on money in PayPal or Venmo?
Yes, money sitting in PayPal, Venmo, Cash App, Revolut or a similar wallet counts for zakat just like cash in the bank. Add the balance on your zakat date to your other savings. If the total reaches the nisab, you pay 2.5%.
A digital wallet is still cash
Zakat is due on money you own and can use. It doesn't matter whether it is in a jar, a high-street bank, or an app. A PayPal or Venmo balance can be spent, sent or withdrawn at any time, so scholars treat it the same as a current account. The aim of zakat is to purify and grow the wealth Allah has given you:
What to include
- Available balance in PayPal, Venmo, Cash App, Wise, Revolut, Monzo pots and similar apps.
- Pending payments to you that you expect to clear, such as a sale on eBay or a friend paying you back.
- Foreign-currency balances, converted at the exchange rate on your zakat date.
- Crypto held inside the app (PayPal and Cash App offer it): count it at its market value. See Do I pay zakat on crypto?
What not to include
- Money you are holding for someone else, like a group's shared trip fund you collected. Count only your own share.
- Credit lines or "pay later" limits. Available credit is not your money; it's a debt waiting to happen. See Is buy now, pay later like Klarna halal?
- Money you already moved to your bank, so you don't count it twice.
If you owe money that is due now, such as a bill or a payment you promised, many scholars let you subtract it first.
Business accounts and side hustles
If you sell on Etsy or do freelance work paid through PayPal, that balance is part of your business cash and counts too. Stock you hold to sell is added at its sale value. Then everything is totalled in one calculation, together with your bank savings. See Do I pay zakat on my savings account?
Does the money need to stay a full year?
Balances in apps go up and down all the time. You don't need to track each euro or dollar. What matters is that your total wealth stayed above the nisab for the year and what you have on your zakat date.
- PayPal, Venmo and other app balances are zakatable cash.
- Include pending payments and foreign-currency balances.
- Leave out money held for others and available credit.
- Add everything to your savings and pay 2.5% if above the nisab.
People also ask
Do I pay zakat on an inheritance I just received?
Zakat on an inheritance isn't due right away: most scholars start its zakat year when you receive it; Hanafis add it to your usual zakat date.
Read the full answer →Can I use zakat to pay off someone's debt?
Yes, zakat can pay off someone's debt if they can't repay it, since debtors are a zakat group. You can usually pay the lender directly with consent.
Read the full answer →Is zakat 2.5% of income or savings?
Zakat is 2.5% of savings held for a lunar year above nisab, not 2.5% of income. Money you spend during the year isn't charged. A worked example.
Read the full answer →Do I pay zakat on a joint bank account?
Yes, but on a joint bank account each person pays zakat only on their own share. Work out who owns what, then check your own nisab.
Read the full answer →Can someone else pay zakat on my behalf?
Yes, someone else can pay your zakat as your agent if you ask or agree. Learn why your intention matters and when zakat paid for you counts.
Read the full answer →