PayPal and Synchrony are teaming up to launch a Venmo credit card in 2020 - Business Insider

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 76 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 34%
  • Publisher: 51%

Sverige Nyheter Nyheter

Sverige Senaste nytt,Sverige Rubriker

PayPal and Synchrony are set to partner on a credit card, which is positioned to capitalize on Venmo's reach among millennials:

The news follows an April report in The Wall Street Journal that the peer-to-peer payments giant was in talks with banks and nearing a deal with Synchrony Financial. Details about the card remain scarce, but it will enable customers to split purchases, opt into sharing their payments in the social feed, and pay their bills directly in the Venmo app.

The card could reach a massive audience, but it would need an exceptionally strong value proposition to do so. Venmo is one of the leaders in the growing digital P2P space: It counts 40 million users, boasted $24 billion in volume in Q2 2019, and has reportedly been used by 20% of customers between ages 20 and 24.

This demographic, which represents the age when most consumers apply for their first credit card, is attractive to issuers looking to grow their audiences amid rising credit appetite and intense industry competition. But issuers including Amex have been aggressively targeting millennials too. Though Venmo is advantaged by its reach, the card would have to offer a valuable and differentiated rewards program, low or no fees , and a strong startup bonus to bring users into the fold.

And it plays to Synchrony's strengths in a way that could give the firm's business a much-needed boost. After a few tough quarters, Synchrony's purchase volume began accelerating again earlier this year, but the loss of top-five partner Walmart could impact its results through this year. Doubling down on its partnership with PayPal — the firm owns PayPal Credit's receivables and issues cards for the provider — could help improve its business.

, Business Insider Intelligence's expert product suite keeping you up-to-date on the people, technologies, trends, and companies shaping the future of consumerism, delivered to your inbox 6x a week. >>

 

Tack för din kommentar. Din kommentar kommer att publiceras efter att ha granskats.
Vi har sammanfattat den här nyheten så att du kan läsa den snabbt. Om du är intresserad av nyheterna kan du läsa hela texten här. Läs mer:

 /  🏆 729. in SE

Sverige Senaste nytt, Sverige Rubriker

Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.

Apple Card's stellar launch could help it weather competition concerns - Business InsiderEarly success of the Goldman Sachs-issued Apple Card may mean it's set to boost Apple Pay's popularity – establishing its dominance over competitors.
Källa: BusinessInsider - 🏆 729. / 51 Läs mer »

The personal essay that got me into Chicago's Booth School of Business - Business InsiderDelano Saporu graduated from Booth in 2018 and credits his essay for helping him stand out. He shared the unedited version with Business Insider.
Källa: BusinessInsider - 🏆 729. / 51 Läs mer »

The Business Platinum card from Amex has a $595 annual fee, but if you use these 11 benefits you could get up to $7,000 in valueThe Business Platinum card has a $595 annual fee, but it's worth it if you can take advantage of WeWork access, annual airline fee credits, and more.
Källa: BusinessInsider - 🏆 729. / 51 Läs mer »