SAN JOSE, Calif.—Venmo is testing a physical debit card that would make it easier for people who store money in their Venmo accounts to use these funds to make purchases at retail stores.
Digital Trends reported that Venmo’s test has only been internal, with staff using the card at selected stores. If the Venmo debit card is issued for the public, Digital Trends sees the move as a big departure from Venmo’s P2P product.
“After all, the whole point of having a money transferring app was to get rid of physical tender, like checks or cash,” stated Digital Trends.
Digital Trends said reports indicate the physical Venmo debit card would be linked directly to a Venmo account balance, meaning users would not have to wait to transfer money into a bank account before spending it.
The interchange fee on the debit card would finally give Venmo, whose P2P product is free, a revenue source, Digital Trends points out.