PayPal to Roll out Branded Venmo Credit Card

Posted: October 23, 2019 | Updated: December 6, 2022

PayPal has announced plans to introduce Venmo Credit Cards in the year 2020. This is going to be a strategic move aimed at improving peer-to-peer payment services with additional options that give users more benefits.

PayPal has partnered with Synchrony to achieve this goal. PayPal, a foremost player in the peer-to-peer payment industry, will become the first service in that sector to offer its users an opportunity to own a credit card affiliated with its brand.

The market projections look encouraging, with a PayPal alternative, more users, mostly younger people, can access the Venmo Branded credit cards and enjoy the benefits of using a Venmo service at businesses that use a traditional credit card processing service.

PayPal aqcuired Venmo back in 2013, after buying Braintree, the parent company of Venmo. PayPal will be taking a step further by expanding the Venmo payment processing platform to include credit card processing and payments.

The Task Ahead for Synchrony

Venmo Credit Card Processing Backed By PayPaySynchrony will leverage its digital technology assets to forge a path to success for this new deal. Synchrony is entering the credit card processing industry that already has established brands such as MasterCard, Visa, American Express, Chase, among many others.

The agreement between PayPal and Synchrony is structured as a profit sharing deal, which may begin with minimal gains, and eventually more profits as people subscribe, to gain access to the Venmo credit card.

The new credit card offer will give consumers more purchasing power and access to credit. Since it is the first of its kind, using the PayPal alternative will give consumers an opportunity to have a new experience, much different from Peer-to-Peer payments.

Possible Benefits for Users

Owning a credit card gives the user a flexible spending limit that is convenient. Considering the reputation of all the brands involved, it is expected that the new Venmo credit cards will have standard and possibly better security features.

Strategic partnerships between Venmo and brands such as Uber, Chipotle, among others, will go a long way to attract more customers who want to enjoy discounts and participate in promotions offered by brand partners.

PayPal has earned the trust of many users. In such a significant strategic business move, the brand’s reputation is important. From our perspective, the Venmo credit card is positioned for success because of the vast customer base and stakeholders in this deal. 

Before its acquisition, Venmo already had a large subscriber base, with over 40 million active users.

Using the Venmo Credit Card

Credit Card Processing E-commerce SolutionsPeople who already have active Venmo accounts will be granted access to manage their new credit card with the Venmo mobile app. All the main features of the credit card will be accessible through the Venmo mobile app. However, PayPal is yet to disclose the exact features of the credit card.

We expect a full disclosure a few months before the launch of the Venmo credit card next year.

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