Venmo Announces Credit Card to Launch Next Year
It looks like Venmo is getting into the credit card game. The reveal of plans for a Venmo card came as the app’s parent company PayPal announced it was expanding its relationship with Synchrony. As a result, the bank will be the exclusive issuer of the upcoming card. While few details about the Venmo credit card were offered, the press release does note that it will “combine Venmo’s expertise in mobile design and social user experience with Synchrony’s industry-leading technology, program management capabilities and data analytics to create personalized shopping and payment experiences for the Venmo user base.” There’s also no firm release date set but it is expected to launch sometime in the second half of 2020.
Although this is will be Venmo’s first credit card, it won’t be their first card overall. Last year the company joined a growing trend in FinTech by debuting their own debit card. Meanwhile PayPal does currently have two credit cards in their line-up — both issued in partnership with Synchrony. For what it’s worth, the PayPal Extras Mastercard offers three points per dollar spent on gas and restaurant purchases, two points on PayPal and eBay purchases, and one point on everything else while the PayPal Cashback Mastercard entitles cardholders to 2% cashback on all of their purchases.
In a statement regarding the growing relationship with Synchrony and the upcoming Venmo card, PayPal CEO Dan Schulman said, “For 15 years, Synchrony has been a strategic partner in offering credit cards that enable greater purchasing power and rewards for PayPal consumers. We are pleased to deepen our relationship with Synchrony to bring groundbreaking new credit experiences to the Venmo community through a desirable credit card and a seamless in-app experience.” As for Synchrony CEO Margaret Keane, she said of the partnership, “PayPal and Venmo continue to transform the payment experience for consumers, and we are proud to be their partner-of-choice. Synchrony’s digital technology and expertise will enable Venmo and PayPal to further grow their business by creating new innovative consumer experiences.”
Without much insight into exactly what the Venmo credit card will look like, it’s hard to say what kind of an impact it could have. However, with the Apple Card recently making a splash with its unique mobile integration, it seems entirely possible that Venmo might try to strike a similar chord. Of course we’ll have to wait until next year to get a better idea of what Venmo and Synchrony have up their sleeves — and what it could mean for FinTech overall.