American online payments firm PayPal has partnered with Synchrony Financial to roll out a Venmo co-branded consumer credit card in the second half of next year.

Venmo is a peer-to-peer money-transfer platform owned by PayPal. Through this move, PayPal aims to get another source of revenue for Venmo, which is yet to earn any profit.

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Under the agreement, Synchrony Financial will exclusively issue the Venmo credit card in the US.

Commenting on the collaboration, PayPal CEO Dan Schulman said: “For 15 years, Synchrony has been a strategic partner in offering credit cards that enable greater purchasing power and rewards for PayPal consumers.

“We are pleased to deepen our relationship with Synchrony to bring ground-breaking new credit experiences to the Venmo community through a desirable credit card and a seamless in-app experience.”

To provide better user experience, the new proposition will leverage Venmo’s knowledge in mobile design and social user experience along with Synchrony’s programme management functions and data analytics.

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Besides, the cardholders will be able to split purchases with others and get real-time alerts.

Synchrony CEO Margaret Keane commented: “PayPal and Venmo continue to transform the payment experience for consumers, and we are proud to be their partner-of-choice.

“Synchrony’s digital technology and expertise will enable Venmo and PayPal to further grow their business by creating new innovative consumer experiences.”

In 2012, Braintree purchased Venmo in a $26m deal and PayPal captured Braintree a year later.