Venmo and Synchrony Introduce Venmo Credit Card
Nearly a year after it was first teased, the Venmo Credit Card is finally here. The famed peer-to-peer payments platform is launching the new card in partnership with Synchrony that will operate on the Visa network. Somewhat akin to the Apple Card, the Venmo customers will be able to manage their card via the Venmo app, including the ability to split purchases with friends or family. Users will also be able to view spending data and insights within the app. Currently, applications for the card are available to select users but will roll-out to all Venmo customers “in the coming months.”
The Venmo Credit Card will carry no annual fee nor will it charge foreign transaction fees. As for the rewards structure, it offers a dynamic cashback system where users can earn 3% back on purchases in their largest spending category each month, 2% on purchases in their second largest monthly spending category, and 1% back on everything else.
Looking at terms and conditions for the card, these 3% and 2% categories are limited to $10,000 in combined annual spending, with that limit resetting on your cardholder anniversary date. Additionally, eligible categories for these enhanced tiers include Dining & Nightlife, Travel, Bills & Utilities, Health & Beauty, Grocery, Gas, Transportation, and Entertainment. If this rewards structure sounds familiar, it may be because the neobank H.M. Bradley unveiled a card featuring a similar set-up back in July.
In terms of other perks, Venmo enthusiasts may appreciate the card’s unique design, which features customers’ Venmo QR card printed on the front. Not only will this code be used by cardholders to activate their card but can also be scanned by friends as a means of sending payments. At launch, the card will come in five color scheme options: Cotton Candy, Nightlife, Denim, Campfire, and Tropical Islands.
When each statement closes, the cashback rewards that users have earned during the month will be automatically transferred to their Venmo balances. From there, these funds can be sent to others or deposited in a linked bank account. As for the downsides of the Venmo Credit Card, another aspect it shares with the Apple Card is that the product does not currently offer a sign-up bonus.
While it may have taken a while to make its debut, the Venmo Credit Card has more or less delivered on the promises it made one year ago. Not only does it include an aesthetic you’d expect from the brand but also builds in features and a rewards structure that likely makes sense for its userbase. At the same time, the lack of a sign-up bonus is disappointing, but may be unnecessary given the hype the card has already received. Ultimately, whether you’re a major Venmo fan or not, this card may make sense for those seeking 3% back in one of the available categories. However, if you’d rather collect points or get more benefit from sign-up bonuses than from monthly rewards, it’s probably safe to skip this one.