Tuesday, November 3rd, 2020
Recently PayPal rolled out a Visa-themed credit card to support its Venmo P2P payment service. The on-of-its-kind card includes a QR code for peer-to-peer transactions, plus a near-field communication (NFC) chip.
The rollout happens as PayPal continues to search for more ways to increase revenue to its widely-used peer-to-peer platform known to enable free transfers.
The no-yearly-fee credit card, provided by Connecticut-based Synchrony Financial, is distributed in place of Venmo and stands out due to its QR code and near-field communication capabilities.
Its launch comes when consumers are embracing contactless payment in physical shops to stay safe from the COVID-19 virus. In the meantime, mobile-wallet vendors like PayPal are continuously testing QR codes to ensure speedy payments with or minus cards.
Thanks to its two-way contactless capabilities, the Venmo card is a futuristic idea that places PayPal as an acceptance platform serving both digital and brick-and-mortar stores.
How it Works
PayPal explains the Venmo Credit Card is available to all US-based qualified Venmo users. The platform already serves up to 60 million users, as hinted by PayPal.
On top of the above features, the card provides automatic refunds on eligible purchases, a customer-specific rewards program, and can be supervised via the Venmo app.
The Venmo credit card launches when PayPal, its mother company, searches for more tactics to generate revenue for its Venmo service and has an active campaign to initiate point-of-sale (POS) transactions via QR codes.
Its first significant move was in July when it publicized that it will permit QR code payments in over 8000 CVS pharmacies in the US, thanks to a partnership with InComm. In total, PayPal has enabled QR code payments in an impressive 28 nations.
More and more Venmo card usage in POS systems will help the platform rake in more revenue if, as anticipated, PayPal shares with Synchrony all Venmo card interchange earnings.
According to PayPalś quarterly results released in July, Venmo made up to $37 billion in Q2, a 52 percent jump YOY as consumers searched for ways to make cash transfers amid a pandemic.
The Venmo credit card is indeed a futuristic innovation. It boasts dual capabilities that will benefit all platform users and improve the checkout experience in online and physical storefronts.