Venmo is moving from enabling payments with emojis on a phone to a more traditional method. The popular app, owned by PayPal, will offer a Venmo-branded credit card in 2020. Synchrony Financial will handle the banking side of the card.

Despite Venmo’s flood of users, the app has yet to turn a profit. It currently makes money from interchange fees through its debit card and customer deposits that are invested in government-grade securities like Treasurys, and from customers who pay a fee to have money transferred to their bank faster than a typical two-day wait period. PayPal has a profit-sharing agreement with Synchrony for the Venmo credit card that factors in things like purchase volume and number of new accounts.

The Venmo card is a way for the bank to diversify away from retail, and dip into the mobile payments boom.


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