(Pocket-lint) - Venmo has launched its first credit card. Appropriately called the Venmo Credit Card, it is a Visa card managed directly in the Venmo app.

How does the Venmo Credit Card work?

Venmo Credit Card is a Visa card issued by Synchrony Bank. It is managed directly in the Venmo app. You can not only apply for the card in the app but also view your spending activity, track rewards, make payments, and so on. It is available in one of five designs and has a QR code on the front for others to scan when they want to send or request money. It also features an RFID chip for tap-to-pay transactions at physical checkout terminals.

But you can also use a virtual version of the card to shop online - it will work even before your physical card arrives in the mail.

Note: The Venmo Credit Card is different from the Venmo Debit Card, a Mastercard issued by Bancorp Bank that released in 2018.

Does Venmo offer cash-back rewards?

Yes. Venmo offers cash-back rewards, which are based on your spending activity in your statement. For instance, Venmo will sort purchases by categories, like travel, utilities, groceries, etc, and then you can earn 3 per cent cash back on your “top spend” category, which is where you spend the most money. You can receive 2 per cent on your second-highest spend category, and 1 per cent on everything else you spend on during the billing period.

Cash rewards are transferred to your Venmo account at the end of every billing period. You can use it like your Venmo balance, whether that's to pay friends, shop online, or transfer money to your bank or debit card on your account.

Are there any fees?

There are no annual fees, but there are fees for late and returned payments as well as interest. Check out Venmo's FAQ page for a breakdown of the fees.

How to apply for the Venmo Credit Card

Interested users can apply through the Venmo app. You must be at least 18 years old, live in the US, and have a free Venmo account. Your Venmo account must also be in good standing with Venmo and should be at least 30 days old.

Who can get the Venmo Credit Card?

The Venmo Credit Card is now available for “select customers" in the US. It will receive a wider roll out to all users likely by end of 2020 or early 2021.

Want to know more about Venmo?

Check out our other Venmo guides below:

Writing by Maggie Tillman.