PayPal’s Venmo announces a brand new digital credit card for subscribers
Purchases made using the Venmo card in a subscriber’s top-spend category returns 3% of the amount spent to the account holder. The subscriber will receive up to 2% of the amount spent on his second-largest category and 1% on all other purchases. There are different categories: Grocery, Bills & Utilities, Health & Beauty, Gas, Entertainment, Dining & Nightlife, Transportation, and Travel. As Venmo says, “What sets the Venmo Credit Card apart is that it maximizes the cash back you earn, automatically adjusting your top spend categories each statement period based on where you spend the most.” And users can also arrange for an alert to go off on their phones when purchases are made or cash back returns hit their accounts.
Even before account holders receive their physical card, they will be given a virtual card which allows them to shop online immediately. And the physical cards will be unique to each user thanks to a personal QR code that adorns the front of each physical Venmo card. Users can scan the code with their smartphone to activate the card, which is available in five different colorful designs. And with the Venmo card, account holders can make contactless payments in stores by tapping it on terminals that accept Visa’s contactless cards.
If the Venmo card is lost or stolen, a quick tap in the app will disable the physical card. When the card is back in the account holder’s hands, another tap in the app will enable the card.
Applying for the Venmo card can be done in the Venmo app. 5% to 15% of Venmo users will get the card this year with the remainder receiving it during the first quarter of 2021. There is no annual fee. Venmo Senior Vice President Darrell Esch says that the company is in talks with Apple to add support for Apple Pay on the iPhone.