Venmo Delves Into Banking With its First Credit Card

Need to Know

• Venmo has released its own credit card, backed by Visa and integrated directly with the Venmo app.
• The PayPal-owned app is offering 3% cashback on personalized spending categories, along with personalized rewards and no annual fees.
• The new card comes with a unique QR code that can be scanned by the Venmo app to easily send money and split payments.
• Venmo currently has over 60 million active accounts, and last quarter, processed $37 billion in payments.

Analysis

Digital payments company Venmo is now launching a credit card, available exclusively for its community of 60 million users. The Venmo Credit Card, provided by Visa, will offer 3% cashback on eligible purchases, personalized rewards, and tools for managing finances.

One of the most appealing features of the new Venmo Credit Card is that it is integrated directly with the Venmo app. By opening the app, users can track purchases, split or share purchases, and make payments. 

Users can create their own custom card, choosing from five colourful designs, can shop online using a virtual card even before the physical card arrives, and can enjoy contactless payments by tapping, rather than swiping, to pay. 

Interestingly, the Venmo Credit Card also provides personalized cashback rewards based on a users’ eight spending categories (which include Grocery, Bills & Utilities, Health and Beauty, etc.). Users will earn 3% cashback on their top spending category, 2% on the next one, and 1% on all other purchases. 

While the Venmo Credit Card does charge typical bank fees for things like cash advances, there is no annual fee and no foreign transaction fees. 

Honoring Venmo’s original design, the Venmo Credit Card also comes with a unique QR code on the front of it, which can be scanned in the Venmo app, allowing users to easily send payments or split purchases.  

Said Darrell Esch, SVP and GM of Venmo, “The card gives our customers the same unique Venmo experience they already know and love, in an intuitive, easy-to-use card and rewards program, that’s all seamlessly managed and controlled from the Venmo app. Venmo has become an integral part of the way our community spends, shares and manages their money, and the Venmo Credit Card represents yet another way we are expanding the capabilities of Venmo into people’s everyday lives.” 

The PayPal-owned payments app is becoming increasingly popular as interest in mobile-friendly payments and “buy now, pay later” options grow online. While PayPal has seen a spike in merchant sign-ups this year, Venmo alone saw $37 billion in payments come through in Q2 of this year.