Venmo unveils new physical debit card

The money-sharing app Venmo recently created a debit card with Mastercard for users to pay for things using a Venmo account anywhere Mastercard is accepted in the U.S.

Venmo, which is owned by PayPal, is typically used to link people’s Facebook and bank accounts, so people can pay friends who also have the app without paper money or checks.

If a user does not have enough money in their Venmo balance to cover a transaction, it is drawn from their linked bank account. They can also transfer their Venmo funds to their bank for a fee of 25 cents, according to Venmo’s website.

Up until now, a Venmo balance could only be used on the app and for online orders with a handful of companies like Uber, J. Crew and Grubhub.

According to Venmo’s website, people can use their card like any other debit card with even more features. People can make ATM withdrawals, turn off the card if they misplace it and use swipe-free shopping at stores, bypassing swiping or inserting a chip.

Venmo spokeswoman Jaymie Sinlao said people can use the new reload feature so that the card won’t get declined as long as they have money in the bank.

“Users who have the Venmo card will have the option of selecting a bank account that will act as the funding source for reloads. Venmo will automatically take money, or ‘reload,’ from the bank account you selected in $10 increments to cover any purchase amount that exceeds your Venmo balance,” Sinlao said.

Users will be able to pick one of six colors — white, yellow, pink, blue, green and black — for their new debit card, Sinlao said.

There is currently a waitlist for the card. Sinlao would not comment on how many people are waiting for the card or how many have been released so far.

Finn Spencer, a 19-year-old Santa Fe College forestry sophomore, has been using the app since coming to college last year, and he sees the need for the card.

“I think the card is pretty convenient and could be super useful,” he said. “I like how Venmo is run; it makes paying people incredibly easy.”

Jonathan McDonnell, a 19-year-old Santa Fe biology sophomore, has also been using the app regularly since starting college, but he believes Venmo is overextending its reach by adding the card.

He recognizes that you must pay to deposit money into your bank account, but he believes Venmo should incentivize keeping money in its account.

“The reason I'm not getting a card is because I don't have any money in the app. All I use Venmo for is to transfer or accept funds from others. But after that, I deposit it in my bank account,” McDonnell said.

McDonnell said he enjoys the app how it is now. However, he only uses it in Gainesville.

“I find that anyone outside of cities with young populations don't know what Venmo is, but maybe that's the whole point of the card. Maybe Venmo knows that its card's usefulness is limited.”