Venmo is a mobile app that allows people to send each other money. Highly popular with millennials, it makes it easy to split the bill at a restaurant.
But the high-tech payment platform owned by PayPal is also going old school with preparations to roll out a co-branded credit card in partnership with Synchrony. The card is expected to launch in the second half of 2020.
"For 15 years, Synchrony has been a strategic partner in offering credit cards that enable greater purchasing power and rewards for PayPal consumers," said Dan Schulman, CEO, PayPal. "We are pleased to deepen our relationship with Synchrony to bring groundbreaking new credit experiences to the Venmo com
The card will be aimed at Venmo’s mostly millennial customer base. The company says it will have more digital capabilities than a traditional credit card, provide granular controls and alerts, and offer rewards.
"PayPal and Venmo continue to transform the payment experience for consumers, and we are proud to be their partner-of-choice," said Margaret Keane, CEO, Synchrony. "Synchrony's digital technology and expertise will enable Venmo and PayPal to further grow their business by creating new innovative consumer experiences."
Acquired by PayPal in 2013
Venmo came on the scene a decade ago with a peer-to-peer payment system. In 2012, the company developed a platform utilizing an integrated social platform. It was acquired by PayPal in 2013.
To use Venmo, consumers download the app and connect it to a credit or debit card, or even a checking account. Consumers can use it to send money to one another and store the money in their Venmo account, much like PayPal.
The companies say Synchrony's open banking APIs, which allow third-party developers to build additional apps around the system, will offer a seamless payment and credit experience for users.
The new credit card can be managed in the Venmo app, allowing consumers to use the card in much the same way as they use the app.
Keep an eye on your inbox, the lastest consumer news is on it's way!