It also gives Venmo one more selling point as Square’s rival Cash App grows at a dizzying pace.
The Venmo Credit Card, which was revealed on Monday morning, relies on Visa’s payment network, has no annual fees and can be managed via the Venmo app. Among its key selling points: A dynamic rewards system in which users get 3% cash back (automatically deposited to a Venmo account) on purchases made within their top spending category, 2% back on purchases made in the second-highest category and 1% back on all other purchases.
The card will also feature a custom QR code that can be scanned to let users send money to and split purchases with
Venmo, the popular mobile payment network owned by PayPal Holdings Inc., on Monday unveiled a digital-focused credit card, entering the fray of financial-services providers looking to leverage smartphones.
The Visa credit card, issued by Synchrony Financial, will be managed through Venmo’s smartphone app, but accompanied by a physical card printed with a QR code. The primary methods of making purchases will be via a credit-card number for online shopping or the physical card in stores, Venmo said Monday.
One of the card’s key differentiators is its rewards structure, which gives users 3% cash back for their top spending category each billing cycle, 2% for the next highest and 1% for all other purchases, said Venmo Senior Vice President Darrell Esch and Dennis Bauer, who leads the Venmo and PayPal partnership at Synchrony. The eight categories include bills and utilities, travel, groceries and dining and nightlife.
Crypto exchange Coinbase is building a new “Platforms” team and has hired two executives from Venmo and Adobe to join this team.
Shilpa Dhar, former head of product at Venmo, has joined Coinbase as VP of product. Ravi Byakod, former head of commerce engineering at Adobe, has joined Coinbase as VP of engineering.
Dhar and Byakod will lead Coinbase’s Platforms team and help the company focus on creating a “strong, scalable, and compliant infrastructure that can keep up with the growing cryptoeconomy,” said Surojit Chatterjee, chief product officer at Coinbase.
Before Venmo, Dhar worked for PayPal for more than ten years, and Byakod has had stints at Google, eBay and Flipkart.
It is unclear what specific products the Platforms team would build, but it hints at scaling the Coinbase Commerce platform since Dhar and Byakod have experience in leading commerce platforms.
The Coinbase Commerce platform helps merchants accept crypto payments.