Peer-to-peer payment service Venmo has launched a Mastercard debit card, allowing users to pay for items in retail stores without having to transfer funds to their bank accounts. The card rollout follows Venmo’s October 2017 move to allow app payments at more than two million online retailers, according to Reuters.
Venmo, which has been part of PayPal since 2013, has become a key part of the company’s growth. In Q1 2018, Venmo processed more than $12 billion of total payment volume (TPV), an 80% increase over the same period the previous year. In the 12 months prior to the end of Q1, Venmo processed more than $40 billion of TPV.
By rolling out the debit card, Venmo hopes to gain an edge in the peer-to-peer payments market. Last year a consortium of some of the largest banks in the U.S. launched Zelle, a network that allows customers to send money to each other via their smartphones. Square has offered its Cash app, which allows customers to spend their balance through a debit card, since 2013.
The Venmo debit card, issued by Bancorp Bank, is in limited release, according to Reuters. It will allow up to $400 in daily withdrawals. Card purchases will appear in the user’s transaction history and can be split with other Venmo users.