Online payments giant PayPal appears to be on a roll as it tries to appeal to a younger demographic with a Venmo debit card. In a move similar to other popular financial institutions today, PayPal appears to banking on (no pun intended) the rather financially-aware and financially-conscious nature of the younger members of its market. Question is, will this be a strategy that will actually work?
Folks at PayPal appear to be on a roll as they plan on launching another new feature for their service – this time a new debit card for its Venmo mobile application users. The primary goal of the said feature is to make sure their reach with younger users are expanded to generate better appeal with their respective services.
It can be remembered that Venmo has been a part of PayPal’s slate since 2013, and it’s become one of the more popular smartphone applications for payments in the United States conducted from person-to-person. With the new feature, the Mastercard debit card within Venmo can now be used to pay in stores using the money embedded within the app itself instead of having to transfer funds from their bank account to their Venmo app.
It can be remembered that Venmo had released the ability for users of Venmo to be able to pay through the app with more than 2-million online retailers worldwide. Now, the California-based company will hopefully use this new feature to help PayPal get a better chance on outing its rivals especially with today’s increased attention towards digital payments – particularly through person-to-person transactions.
Interestingly, a group of some of the biggest banks in the United States launched the Zelle network, something that allows customers to be able to send funds to each other in an instant thanks to their smartphones.
Another potential competitor is something called Cash from Square Inc. that can spend their Cash balance through debit cards. Square Inc. is a company from folks at Twitter, who wants to have an edge in the realm of digital payments as well.
In terms of payments, Zelle’s network had as much as $25-billion moved around accounts during the first quarter of 2018. Venmo’s systems had processed around $12-billion. There’s no data for Cash, as Square didn’t choose to disclose information about Cash’s transaction volume.
In the case of PayPal’s Venmo, however, it appears it’s bound for a future massive release. Only very few users would be able to try Venmo’s debit card so far given its limited release. The card, with Bancorp Bank in charge of issuing them to users, will be allowing users to have a $400 limit when it comes to withdrawals. It appears the card itself can be split with fellow Veno users, and card purchases will be indicated in the transaction history.
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