The popularity of contactless payments during the coronavirus pandemic is causing more companies to leverage their smartphone and web presence. Venmo is the latest platform to take advantage of the uptick in contactless payments by introducing a digital-only credit card. Here is what you need to know about the new Venmo credit card from Synchrony.
New Venmo Visa Card
The new Venmo credit card is a digital-focused card that holders can manage through Venmo’s smartphone app. Venmo is a leading mobile payment network, owned by its parent company, PayPal.
The Venmo Card is a Visa, issued through Synchrony Bank. Synchrony is a leading issuer of co-branded credit cards with retailers and brands, including PayPal.
Like other co-branded credit cards, the Venmo Visa will earn cash back in different categories. Cardholders will earn 3% cash back on their top-spending category each billing cycle, 2% back on their next highest-spending type, and 1% back on all other purchases. The top-spending categories include broad groupings, such as bills, utilities, groceries, travel, dining, and more.
A Digital-Focus with a Physical Presence
According to Venmo, the Venmo Visa will be a digital credit card primarily with a physical card as a companion. The main way to pay will be through the Venmo app or other mobile payment solutions, such as Google Pay and Samsung Pay. The company says it is in negotiations with Apple regarding Apple Pay, but there is no Venmo-Apple Pay compatibility to date.
For instances where mobile wallets are not accepted, a physical credit card is also available – like the popular Apple Card from Goldman Sachs.
When Does the Venmo Visa Credit Card Launch?
While no official launch date is yet known, Venmo is providing a timeframe for the card’s release. Both Synchrony and PayPal anticipate between 5% to 15% of Venmo users can expect to receive their new card this year. The remainder of other applicants can expect their new credit card in Q1 2021.
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