Knot has partnered with Venmo to let users set Venmo as their default saved payment method at partnered merchants.
According to the official press release, the integration removes the need for users to manually update payment details with each individual merchant.
Through the Venmo app, users can add Venmo as their saved payment method at merchants they already use, in a small number of steps, without updating payment information separately for each merchant. Depending on the merchant, users can either link their Venmo account to pay with Venmo at checkout or save their Venmo Debit Card as the stored payment method. Moreover, the Venmo Mastercard referenced in the integration is issued by The Bancorp Bank, under the licence from Mastercard International Incorporated, and can be used wherever Mastercard is accepted.
For Venmo, being set as the default payment method at frequently used merchants is intended to keep the service positioned as a regular payment option rather than an occasional one, with the aim of increasing recurring use across its platform.
First deployment of a proprietary wallet
The company stated that this is the first instance in which Knot has provisioned a proprietary checkout solution as a default payment option, rather than a card linked to an existing account. Previously, Knot's card-switching capability, branded CardSwitcher, has focused on updating stored card details on file with merchants. With this integration, that capability has been extended to a native digital wallet, meaning users can set Venmo itself, rather than a card associated with it, as the stored payment method. Knot has described the move as an extension of merchant connectivity to other proprietary payment methods beyond cards.
Positioning within the payments ecosystem
According to Knot, the partnership is designed to create value for three parties involved in a transaction. Users gain a way to manage saved payment methods across merchants without repeated manual updates. At the same time, Venmo, as a payment method provider, gains a route to increased adoption and a larger share of recurring user spend. Merchants benefit from having a payment method on file, which Knot states can reduce failed payments and lower involuntary customer churn linked to expired or outdated card details.
Knot works with financial institutions and fintech companies of varying sizes, including large banks, credit unions, and growth-stage fintechs, on card-switching services. The partnership with Venmo extends this activity to one of the more widely used consumer payment applications in the US market, according to the company.
