Venmo just introduced its debit card
On Monday, June 25, PayPal’s (PYPL) Venmo introduced its debit card, which is part of a partnership with Mastercard (MA). The new Venmo card can be used at ATMs to get cash through the user’s Venmo account. The Venmo card is expected to allow app users to pay anywhere Mastercard is accepted in the country.
The debit card can also record transactions to the user’s Venmo account to split charges with friends. Card users don’t need to remember to charge friends or track payments manually. Purchases on Venmo’s new card would show up on the account of the users with the option to split.
Millennials are increasingly changing the way they pay for transactions
This announcement comes at a time when there’s a tectonic shift in how Millennials are paying for their transactions. Many transfer money through peer-to-peer services offered by Square (SQ), Paypal, and Venmo, as well as online payment services offered by tech giants Apple and Google (GOOGL).
Venmo’s new card is expected to compete with a similar service offered by Square. Square allows users to customize their card designs, unlike Venmo. Paypal’s acquisition of Venmo-parent Braintree has helped catapult its revenues in the past few quarters, as the graph above shows.