Venmo nears deal with Synchrony to offer its own branded credit card
Venmo, the mobile payment service app adored by millennials and Gen Zers, is looking to go old school by issuing its own branded credit card in a effort to boost profits.
The Wall Street Journal reported that PayPal Holdings, the owner of Venmo, is close to selecting Synchrony Financial as its issuer for the new credit card after meeting with several banks over the last year.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PYPL | PAYPAL HOLDINGS INC. | 86.77 | +0.20 | +0.23% |
| SYF | SYNCHRONY FINANCIAL | 67.52 | +0.30 | +0.45% |
While a spokesperson for PayPal or Synchrony did not immediately response to FOX Business' request for comment, a source told the Journal that Venmo is hoping to announce its plans for a card later this year as rewards and other potential features are still being negotiated.
The decision to launch a credit card follows the app's agreement with Mastercard last year to offer debit cards to users in an effort to boost revenues.
While Venmo has experienced success over the years with more than 27 million users, according to research firm eMarketer, the startup has not been profitable and has been losing cash for years.
CLICK HERE TO GET THE FOX BUSINESS APP
The potential deal would also be a good move for Synchrony Financial, who earlier this year ended its feud with Walmart after the retailer sued them for alleging breaking an "implied promise" during the long-running partnership.