You probably knew that this was coming, but Venmo, the PayPal person to person product, is now offering debit cards. Now consumers who receive funds from their friends through Venmo, no longer need to wait to cash out the balance to their checking account, but they can simple spend the balance right away on their Visa debit card. The product is current in pilot. As TechCrunch reported:
Now TechCrunch has learned that Venmo is inviting some users to a beta program where they’ll be sent a card for free that is attached to their Venmo account. Users can pay with this card in stores and online just like a normal debit card — and the money spent will be debited from their Venmo balance.
Venmo confirmed the test, telling TechCrunch: “We have started sending a limited number of beta invitations to test a physical Venmo card to some of our users. While we’re excited to hear what people think, beta features are not guaranteed to see general release”.
A June report from Recode noted that the debit card was being tested by company employees, but now the card is being offered to normal users as part of a beta program.
The article seems obsessed with the look of the card, but the more important details are that this is being offered by invitation to active users and appears to mirror offerings similar to Apple and Square. It is Visa branded and is sponsored through Metropolitan Commercial Bank, according to the article.
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
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