BACK

Breaking News

Venmo set to launch new credit card in 2019

The digital wallet app will enter the market in an effort to boost customer engagement and profits

Summary

Venmo is the latest tech company to try its hand at credit cards in an effort to expand earnings.

The editorial content below is based solely on the objective assessment of our writers and is not driven by advertising dollars. However, we may receive compensation when you click on links to products from our partners. Learn more about our advertising policy.

The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Please see the bank’s website for the most current version of card offers; and please review our list of best credit cards, or use our CardMatch™ tool to find cards matched to your needs.

Venmo – a digital wallet app that enables you make and share payments with friends and family – is taking a conventional approach to turn profits by issuing a branded credit card, according to media reports.

On April 19, The Wall Street Journal reported that the company, which PayPal Holdings Inc. owns, will announce the new card in 2019.

Venmo is the latest tech company to delve into the credit card business in an effort to increase customer engagement and expand earnings.

See related: Venmo guide: How to send, receive money using Venmo

The details

The company’s execs have been meeting with various banks since late 2018 to choose one to issue the new card and are leaning toward Synchrony Financial, according to sources quoted by The Wall Street Journal.

PayPal has been doing business – separately from Venmo – with Synchrony since 2004 when it began issuing the company’s Cash Back Mastercard.

And in July 2018, PayPal Credit gave Synchrony $7.6 billion of its loan balances that consumers used to finance purchases online.

Card features, such as rewards, will be announced when it is issued.

See relatedWhat you need to know about the Venmo card

Venmo is entering a crowded market

Venmo, which has not been turning a profit for years, anticipates that a credit card will help get the company on firm financial ground and add to PayPal’s goal of becoming more popular for consumers to use with offline retailers.

The credit card market is crowded with technology companies – such as the Apple Goldman Sachs and American Express Amazon partnerships – entering the field in an effort to boost consumer spending.

But Venmo’s goal is to get those who use only its free features to spend more money, and a branded credit card could be the answer.

What’s up next?

In Breaking News

6 questions about prepaid cards

Considering a prepaid card? Here’s everything you should know about prepaid cards, including fees, new protections and mobile wallet integration.

Published: April 18, 2019

See more stories
Credit Card Rate Report Updated: June 12th, 2019
Business
15.61%
Airline
17.54%
Cash Back
17.68%
Reward
17.57%
Student
17.79%

Questions or comments?

Contact us

Editorial corrections policies

Learn more

Join the Discussion

We encourage an active and insightful conversation among our users. Please help us keep our community civil and respectful. For your safety, do not disclose confidential or personal information such as bank account numbers or social security numbers. Anything you post may be disclosed, published, transmitted or reused.

The editorial content on CreditCards.com is not sponsored by any bank or credit card issuer. The journalists in the editorial department are separate from the company’s business operations. The comments posted below are not provided, reviewed or approved by any company mentioned in our editorial content. Additionally, any companies mentioned in the content do not assume responsibility to ensure that all posts and/or questions are answered.