PayPal-owned peer-to-peer payments app Venmo launched a credit card issued by Synchrony Bank, powered by the Visa network.

Why should we care?
Venmo is no longer just about paying friends for beer. PayPal has long been under pressure to monetize Venmo, the peer-to-peer payments app it acquired in 2013 through the purchase of payments tech company Braintree. The app, which has more than 60 million active accounts, is especially popular among millennials and Gen Z customers who typically add emoji-punctuated messages explaining the purpose of the payments. PayPal began monetizing Venmo through instant-transfer fees, a Mastercard-branded debit card, and by allowing brands to allow their clients to pay with Venmo. Now, with the credit card offering, Venmo can tap into credit card fees as a new lever to generate revenue. True to its youth-focused marketing aesthetic, Venmo cards will be offered in five colors that present the user’s unique QR code. The cards will also include personalized finance insights, potentially a play to get consumers locked into the PayPal ecosystem for life.