PayPal mobile payments brand Venmo unveiled a debit card, expanding the scope of its service to include physical retail payments and stepping up its challenge to traditional banks.
Venmo’s core business is the increasingly popular social payments space, where the app is generally used for transferring small amounts of cash between friends. It also allows online payments at a limited number of merchants.
However, the launch of its own-branded Mastercard debit card will offer the brand its first offline presence. Customers will be able to withdraw their prepaid Venmo balance at ATMs in addition to paying for goods in a number of physical retailers.
The service is only available in the US and can process payments either using prepaid Venmo funds or through a bank card provided by a third party linked to the account.
Expansion of Venmo into offline payments comes as parent PayPal continues to increase its presence in physical retailers and steps up its challenge to traditional financial service providers.
During May, PayPal inked a $2.2 billion deal to acquire retail point of sale kit provider iZettle as one of a number of acquisitions to increase its scope away from its core e-commerce platform.