Venmo has announced that it is launching a new MasterCard debit card that will allow users to make in-store and online payments with their Venmo balance.
The card, which is issued by the Bancorp Bank, is being rolled out in an effort to expand Venmo’s monetization potential and help the company reach more younger consumers.
The peer-to-peer payment app says that if a cardholder has a low balance, the card will reload using the user’s preferred funding source. Venmo says its new card will allow up to $400 in daily withdrawals. There’s a $2.50 fee to withdraw money from your Venmo account using an ATM, but no fee to make regular purchases.
Card purchases will show up on a transaction history in the app, which will give users the ability to split charges among friends. Also within the app, users can deactivate the card when it’s misplaced and then reactivate it when it’s found.
The card features a vertical design and comes in a choice of six colors -- yellow, pink, blue, green, black, and white. It has a chip for security and an icon near the chip that indicates support for contactless payments.
Venmo says users can now “get in line” for the card, adding that it’s striving to quickly move people off the waitlist and process applications. There’s no fee to sign up for it, and it should arrive within 5 to 7 days after approval. The card can be used everywhere MasterCard is accepted, but only in the United States.
Last fall, PayPal added the ability for Venmo users to shop on the mobile web at almost everywhere PayPal is accepted. In the first quarter of this year, Venmo processed around $12 billion in payments.