Venmo unveils its first-ever credit card

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Venmo is debuting its much-anticipated branded credit card today to "select" customers with a "3-2-1" "personalized" rewards program as well as tools to track and manage finances.

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VENMO TO ROLL OUT ITS OWN CREDIT CARD IN 2020

First announced a year ago, the Venmo Credit Card will allow the Venmo community to control and manage the card all from the Venmo app. The card design, available in 5 colors, features a unique QR code that can be activated through the camera of a mobile phone. The code also links up to the Venmo app, where individuals can send a payment to a friend or split purchases.

The card will offer a unique type of rewards program. Users can earn different reward levels — "3-2-1" – from eight spending categories:

  • Grocery
  • Bills & Utilities
  • Health & Beauty
  • Gas
  • Entertainment
  • Dining & Nightlife
  • Transportation
  • Travel

For their top spending category, users will earn 3% back, from their second-highest category users will receive 2% and 1% back on all other purchases.

“Our vision for Venmo is to not only be the go-to app for payments between friends but also a ubiquitous digital wallet that helps consumers spend wherever and however they want to pay,” a Venmo spokesperson told FOX Business.

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The Venmo Credit Card is a Visa card issued by Synchrony Bank represents an expansion of services by the peer-to-peer payment platform. It marks the second move by the PayPal-owned company in trying to capitalize on its mobile-first experiences. Two years ago it started offering a Mastercard-branded debit card.

A "select" group of customers to be offered the card will be chosen on a randomized basis, Those Venmo users chosen will see a ‘Venmo Credit Card’ section in the dropdown menu in the latest update of the app.

The new card's APR ranges from 15.25% to 24.24%, depending on the account holder’s creditworthiness.

“The future of financial services is delivering personalized and unique experiences that connect the digital and physical worlds,” Senior Vice President & General Manager of PayPal and Venmo at Synchrony Dennis Bauer, told FOX Business. “Together with Venmo, Synchrony’s open banking APIs offer a seamless credit and payment experience for users. Venmo customers can easily apply, buy, and manage their account natively in the Venmo app. This will enable Venmo and PayPal to further grow their business by creating new consumer credit experiences.”

The Venmo Credit Card program will also push the company towards monetization as it expands new products into the Venmo community and network. And as contactless payment and scan to pay solutions are propelled forward in the coronavirus era, Venmo will continue to gain leverage with retailers and restaurants.

TickerSecurityLastChangeChange %
PYPLPAYPAL HOLDINGS INC.196.85+4.94+2.57%
SYFSYNCHRONY FINANCIAL28.38+0.92+3.35%
VVISA INC.203.55+2.10+1.04%

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CVS will be the first national retailer to implement PayPal and Venmo QR code technology. In the fourth quarter of 2020, all of CVS’s 8,200 stores across the country will integrate this technology into its checkout experience.

“We look forward to seeing the positive impact that the card will have on Venmo’s continued goals and vision,” the spokesperson said.

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