• Credit card branded with the logo of Venmo, an app-based finance name owned by PayPal, looks set to be launched
• New partnership will be powered alongside Synchrony as part of a collaboration
• “PayPal and Venmo continue to transform the payment experience for consumers, and we are proud to be their partner-of-choice”, said Synchrony spokesperson
One of the biggest names in the online money transfer sector has announced that it will work alongside a fintech company to launch a new credit card offer.
PayPal, which is well-known in the cross border payments world, will join up with Synchrony Financial to launch the new product.
The product will be a credit card that is branded by Venmo, a PayPal-owned organisation which is popular in the US.
As part of the new product offering, customers can use the Venmo mobile app to access their services.
They will also be able to use it to share the cost of joint purchases with other people.
There will be a data element to the new partnership too.
Powerful analytics tools will mean that people will be able to receive targeted “experiences” and “personalised” recommendations.
In a statement, PayPal’s CEO Dan Schulman described the move as heralding “groundbreaking new credit experiences”.
“For 15 years, Synchrony has been a strategic partner in offering credit cards that enable greater purchasing power and rewards for PayPal consumers”, he said.
“We are pleased to deepen our relationship with Synchrony to bring groundbreaking new credit experiences to the Venmo community through a desirable credit card and a seamless in-app experience.”
On Synchrony’s part, CEO Margaret Keane said that the new partnership will lead to “innovative consumer experiences”.
“PayPal and Venmo continue to transform the payment experience for consumers, and we are proud to be their partner-of-choice”, she said.
“Synchrony’s digital technology and expertise will enable Venmo and PayPal to further grow their business by creating new innovative consumer experiences.”
Venmo’s history is recent but complex.
The firm is young, but it was acquired first in 2012 by another firm called Braintree for over $25m.
Braintree itself was later bought out by PayPal for $800m – and hence Venmo became part of the PayPal family.
As well as providing financial services, Venmo also has an element that is akin to social media in many ways.
Users are able to provide feedback on their payments which are shared within their networks if they so choose and share information about what they are buying.
The firm has been aggressive in its approach to partnerships in recent months.
According to its own figures, Venmo has 40 million users – and is due to turn over a revenue of around $300m over the course of the whole year.
Don’t be the last to hear about the major developments in the complex work of internet-based money transfer.
