Venmo, a peer-to-peer payment app owned by PayPal announced June 25 an offering of a Mastercard-branded debit card to enable consumers who use Venmo to spend their balances in more places.
Merchants that accept Mastercard can process Venmo cards, and if the card is lost, consumer can use the app to suspend spending.
According to a PYMNTS article, “The debit card launch also comes as Venmo tries to fend off more competition, including from Zelle, which is forecasted to reach 27.4 million users this year. That compares to Venmo’s current 22.9 million users. But Venmo still has a price advantage going forward. PayPal, for instance, charges 2.9 percent, plus a $0.30 fixed fee on payments from credit and debit cards in the U.S., while Venmo charges 3 percent for credit card payments and doesn’t charge anything for debit card payments.”
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