Venmo, one of the P2P payment giants has launched its first card, which comes with a built-in QR code and personalized rewards setup. The contactless Visa card which was issued by Synchrony can be managed within the Venmo app. Here, the customers can track their spending which is organized into various categories such as dining, groceries, bills, and transportation.
Every month, there would be cashback made by the card to the customer’s Venmo account based on the following spending categories: one percent for the third, two percent for the second, and three percent for the one on which most was spent. The card is available in 5 designs to the users and it also has a unique QR code that can be scanned to activate it and by friends to split a purchase or to send a payment.
The card would give the customers the same unique Venmo experience that they already know and love. It would be an intuitive, easy-to-use card and rewards program, that’s all seamlessly managed and controlled from the Venmo app.
Many of the programs structure cash back incentives based on categories they have selected; For example, Amazon’s credit card gives up to a 5 percent rebate for Amazon and Whole Foods purchases, 2 percent at restaurants, gas stations, and drug stores, and 1 percent for everything else. Unlike this, Venmo’s card rewards cash back based on the customer’s spending habits.
Venmo will sort the customer’s purchases into several categories which include travel, dining, and nightlife, bills and utilities, grocery, health and beauty, transportation, gas, and entertainment. The user would earn 3 percent cash back on their top spend category which means the one area where the customer spends the most money during his/her statement period, 2 percent on the user’s second-highest spend category, and 1 percent on everything else. The card doesn’t post an annual fee as a charge, but it charges other typical fees for things like late and returned payments, cash advances as well as interest.
At the end of every statement period, the cash rewards are automatically transferred to the user’s Venmo account. The customer can use it the same way they use the rest of their Venmobalance; make purchases online, pay friends or transfer funds to debit cards or the bank connected to the user’s Venmo account.
