Venmo Credit Card launches with personalized cash back earning

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Venmo, the popular PayPal-owned peer-to-peer payment service, has announced the launch of a new cash back credit card that can help you earn rewards based on which categories you spend the most in.

The Venmo Credit Card, as it’s officially known, is issued by Synchrony Bank and offers 3 percent, 2 percent and 1 percent cash back rewards based on the spending you do most. Best of all, Venmo calculates this for you: There’s no need to track or activate the card’s spending categories.

Currently, the credit card is only available to select customers who apply via the Venmo app (specifically, the most recent version of it). According to Venmo, the card will be available to all U.S. Venmo customers within the next couple of months.

This is the latest in a long line of major tech companies entering the credit card landscape. Bankrate industry analyst Ted Rossman points out the Venmo Card’s similarities to the Apple Card, including the young user-base shared by both companies, low fees and cash back-focused rewards.

“Like Apple, I think Venmo is trying to create a whole payments ecosystem,” Rossman says. “You could potentially get your pay deposited into Venmo, pay companies and individuals within the platform, etc.”

Venmo Credit Card details

Your 3 percent, 2 percent and 1 percent categories are calculated each month, giving you added flexibility should your spending habits change (note, there’s a $10,000 annual combined spending cap on the 3 and 2 percent categories). On the Venmo website, the following are featured as potential spending categories: transportation, travel, grocery, entertainment, dining and nightlife, bills and utilities, gas, health and beauty and more.

Managing your Venmo Credit Card is easy, as you can track your card’s activity and make bill payments within the Venmo app. Additionally, a virtual version of your card is available by pulling up the app, giving you the ability to make purchases shortly after approval.

As a Visa card, the Venmo Credit Card offers access to a zero liability policy, roadside dispatch services, lost or stolen card replacement and more.

Added personalization

Just as with the Venmo app, the Venmo Credit Card comes printed with your personal QR code for use in paying (or being paid by) friends. There are also five colorful card designs to choose from.

Is the Venmo Credit Card right for you?

If you’re already an avid user of Venmo and are looking for a flexible, no-annual-fee cash back card that adjusts to your spending style each month, the Venmo Credit Card may be a good fit.

“Other cards have tiered rewards structures that you can customize (like the Bank of America® Cash Rewards credit card and the U.S. Bank Cash+™ Visa Signature® Card), but both of those need to be set ahead of time,” Rossman says. “I like how the Venmo Card makes it automatic.”

There’s also a Venmo Debit Card, through which you can earn automatic rewards based on participating merchants (listed within the Venmo app), though there’s more earning potential with the credit card.