Venmo is planning to introduce a physical debit card it’s now testing to supplement its payments app, according to Recode and a follow-up report in Paybefore sister publication Banking Technology.
The card will enable users to make purchases at brick-and-mortar shops using the money from their Venmo accounts.
Test purchases are being made at fast-food chains including Taco Bell and Chipotle and “small mom-and-pop shops,” according to Recode.
U.S. competition is heating up for P2P.
In May, Square launched a physical prepaid card for its Square Cash money transfer service (which competes with Venmo).
Meanwhile, Apple has recently unveiled Apple Pay Cash—a new money transfer service and a Green Dot-issued digital payment card that can be used for payments in physical shops.
Venmo’s major rival Zelle is ramping up its presence, with a raft of U.S. banks and credit unions signing up for its P2P payment service.
Also, consumers in the U.S. will soon be able to use PayPal in Android Pay to make purchases at retailers in-store, in-app and online.
And a new deal between PayPal (Venmo’s parent) and Wells Fargo is on its way. Wells Fargo’s customers will soon be able to use PayPal to make mobile wallet purchases at participating merchants that accept NFC payments. It will allow customers to use a Wells Fargo debit or credit card in PayPal wallet to make payments with an Android phone.
In California, Redwood Credit Union has just launched its own mobile P2P payment service, RCUpay.
- Green Dot Aids Apple’s Bid to Bite into P2P
- P2P Rising: New Study Points to a Market on the Verge of Major Growth
- Square Cash Gets Physical with Companion Prepaid Card