Wednesday, November 4th, 2020
In the latest wave of new options for customers, PayPal Holdings Inc. has rolled out a brand new Visa-branded credit card for its Venmo peer-to-peer payment service. This new card features a QR code for P2P transfers and a near-field communication chip for merchant acceptance.
The goal? PayPal’s launch is the company’s latest attempt to boost revenue for its increasing popular P2P network, which allows users to make free transfers. This no-annual-fee card is not the first to be issued, however. Others have been issued on behalf of Venmo. But the fact that it features a QR code capability and NFC could very well make it unique.
Another reason for the timing of offering this service is the current pandemic situation. As time goes on, more and more consumers have grown concerned with contracting the virus. To mitigate the risks, many are turning to contactless technology in stores. Since PayPal has already been exploring the potential of QR codes as a way to allow users to make fast contactless payments – with or without cards – the timing seemed right to roll out this new service.
Industry experts are already describing the credit card as the new, best option for customers. It is “clearly a ‘future forward’ idea and it positions PayPal well as an acceptance offering that can be used in any situation, physical or digital,” says Thad Peterson, a senior analyst at Aite Group, a Boston-based consultancy.
Who is “eligible” for New Venmo Card?
PayPal says the card is now available to all “eligible” Venmo users in the United States. According to information released by PayPal, this includes a Venmo user base of approximately 60 million total. Some of the current offerings include:
- Automatic cash back on “eligible” purchases
- A “personalized” rewards program
- Ability to manage the card through the Venmo app
- Earn up to 3% cash back each month on purchases made in the “top spend’ category, which change month-to-month as customer usage changes.
In addition to trying to meet customers’ changing demands and needs, PayPal is also using the new card as a way to launch an ambitious program to enable point-of-sale transactions via QR codes. Back in July, PayPal shared that it would enable QR code payments at 8,200 CVS pharmacy stores across the U.S. The company has also initiated this payment form in 28 other countries.
In July, the company disclosed that Venmo had reached upwards of $37 billion in volume in the second quarter – up 52% year-over-year. The pandemic has been a major force in this boost in revenue. As users ramp up use of this new card, it would help the company boost its revenue potential even further. (Synchrony and PayPal will share income on all Venmo card transactions.)
How to Offer Your Customers Multiple Payment Options
It’s safe to say these unprecedented times have affected merchants across all industries. It has become more important than ever to offer customers convenient, safe and fast payment processing options. Best Payment Providers offers everything you need to find the best payment processors on the market today. Easily browse reviews and find the latest news and updates, like PayPal adds QR codes. Our team at Best Payment Providers is committed to making sure you have the information you need to keep your operations running smoothly.