Venmo’s Latest Effort to Turn a Profit: Credit Cards

Venmo, having reached verb status, the pinnacle of branding and awareness, is now pushing the limits when it comes to financial innovation for their millennial customer with...a credit card? Really? Apparently execs at the company have been meeting with banks since last year to discuss issuing a Venmo-branded credit card (which, mind you, will be separate from the already live PayPal credit card). Why, you ask, would Venmo be looking to issue a credit card?

With its credit card, Venmo hopes to squeeze more rev­enue from the many young con­sumers who use only its free ser­vice. Roughly one in five con­sumers be­tween ages 20 and 24 sur­veyed by 451 Re­search last year said they had made a Venmo pay­ment.

Shocking. In all seriousness, I wish that the company would really try and innovate on what the future looks like and focus on customer value instead of shareholder value. PayPal has made some smart moves of late, and I for one think they should use their positive momentum to try and reestablish themselves as a driver of innovation instead of being content ceding that role to the likes of Square, Stripe, Ant Financial et. al.


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