After telegraphing its launch last October, Venmo launched its first credit card as parent PayPal continues to look for ways to monetize its popular app.
What’s the deal: The Venmo Credit Card offers 3% cash back on eligible purchases, personalized rewards and tools to track and manage finances.
- Activity is managed directly in the Venmo app, giving a seamless and flexible way to track spending and rewards, split or share purchases, and make statement payments.
- The cash back rewards system is tiered — spending is split into 8 different categories and cardholders get 3% back on the category where they spend the most money, 2% on the next, and 1% on all other.
- There’s no annual fee for the Venmo Credit Card and no foreign transaction fees.
- Venmo already offers a debit card, a Mastercard issued by Bancorp, which offers many of the same features. Millennials have traditionally preferred debit cards over credit, but that might be changing as they age.
“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,” Darrell Esch, SVP and GM at Venmo, said in the press release.
Venmo Cards come in five different colors with the user’s own Venmo QR code on the front, making each card unique.
The Venmo Card is issued by Synchrony Bank, which is known for powering a number of store cards, like Gap, American Eagle, Amazon, and eBay.
The card can also be used in both the Google Pay and Samsung Pay apps for tap-to-pay purchases at retailers. Venmo is in discussions with Apple for support in Apple Pay on iPhones, according to Bloomberg.
Venmo is rolling out the new card to select users via its app and will make it generally available over the next few months.