The digital payment industry has a new update to share and this comes as good news for those who make purchases at brick and mortar stores.
Venmo, a mobile payment service provider, owned by PayPal, has come up with an innovative solution for customers. Sources say they are building a physical debit card which will be linked with users’ Venmo accounts and users can make payment with the card at brick and mortar stores.
Even though there is no official statement from Venmo, the company’s feeds indicate testing of these cards by making purchases at local fast food joints such as Chipotle and Taco Bell as well as small local shops.
To date, the Venmo app was used only for online or digital payments or for transferring money to other Venmo accounts. Having a physical debit card linked to the account will be a tremendous advantage. Users don’t have to wait for 24 hours for the money to be transferred into their accounts or to show up in their bank account.
From the company’s point of view, the move is strategic and a sharp revenue generation model. For every transaction on the card, merchants will pay a small fee to the issuer, regardless of whether it is debit or credit. This is beyond the primary money-payment service that Venmo offers free of charge to its customers.
Though the company did not disclose anything officially, a spokesperson did make the following comment, “They are testing new features of Venmo to help users to pay their friends or make purchases.”
Competition in this domain has picked up steam with Square (Square Cash) and Apple (Apple Pay Cash) developing and marketing their own debit cards that will be linked to their respective wallets. This innovation serves as competition for leading banks and credit card companies.
Anirudh M. for TechFunnel.com