American online payments firm PayPal has partnered with Synchrony Financial to roll out a Venmo co-branded consumer credit card in the second half of next year.
Venmo is a peer-to-peer money-transfer platform owned by PayPal. Through this move, PayPal aims to get another source of revenue for Venmo, which is yet to earn any profit.
Under the agreement, Synchrony Financial will exclusively issue the Venmo credit card in the US.
Commenting on the collaboration, PayPal CEO Dan Schulman said: “For 15 years, Synchrony has been a strategic partner in offering credit cards that enable greater purchasing power and rewards for PayPal consumers.
“We are pleased to deepen our relationship with Synchrony to bring ground-breaking new credit experiences to the Venmo community through a desirable credit card and a seamless in-app experience.”
To provide better user experience, the new proposition will leverage Venmo’s knowledge in mobile design and social user experience along with Synchrony’s programme management functions and data analytics.
Besides, the cardholders will be able to split purchases with others and get real-time alerts.
Synchrony CEO Margaret Keane commented: “PayPal and Venmo continue to transform the payment experience for consumers, and we are proud to be their partner-of-choice.
“Synchrony’s digital technology and expertise will enable Venmo and PayPal to further grow their business by creating new innovative consumer experiences.”
In 2012, Braintree purchased Venmo in a $26m deal and PayPal captured Braintree a year later.