PayPal’s launching of a Venmo credit card gives it one more way to monetize the peer-to-peer (P2P) payments platform.
It also gives Venmo one more selling point as Square’s rival Cash App grows at a dizzying pace.
The Venmo Credit Card, which was revealed on Monday morning, relies on Visa’s payment network, has no annual fees and can be managed via the Venmo app. Among its key selling points: A dynamic rewards system in which users get 3% cash back (automatically deposited to a Venmo account) on purchases made within their top spending category, 2% back on purchases made in the second-highest category and 1% back on all other purchases.
The card will also feature a custom QR code that can be scanned to let users send money to and split purchases with friends, and an RFID chip that enables tap-to-pay functionality. Users can opt to receive real-time notifications when their card is charged or rewards are deposited.
The Venmo Credit Card launch follows the 2018 launch of the Venmo Debit Card, which relies on Mastercard’s network. That card lets users make purchases using funds deposited to their Venmo accounts, as well as make no-fee withdrawals via select ATMs.
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With Venmo possessing more than 52 million active accounts as of the end of 2019, social sharing features are a key selling point for both of Venmo’s cards in a pretty crowded branded payment card landscape. Along with giving users the ability to split payments with other Venmo account holders, the cards let users share transaction activity to their