Venmo announced a new rewards initiative, Venmo Stash, on Monday, allowing users to earn cash back when transacting with favorite brands and engaging with Venmo products.
Unlike traditional credit card rewards, Venmo offers up to 5% cash back directly to users’ Venmo Mastercard Debit Card. The program aims to increase engagement and encourage users to keep funds circulating within the Venmo ecosystem.
This move aligns with trends showing younger consumers, especially Gen Z, prefer debit cards over credit cards. A 2024 eMarketer study found only 39% of Gen Z users frequently use credit cards, compared to 51% among older generations. Similarly, a Morning Consult survey showed 63% of Gen Z favored debit cards.
To appeal to this audience, payment providers and retailers are introducing debit rewards and alternative payment options such as “buy now, pay later” (BNPL), offered by companies like Affirm, PayPal Pay Later, and Klarna. Venmo hopes its rewards program will keep younger users invested in its platform while competing with rivals like Cash App, which offers similar cash back through its own debit card.
Under Venmo Stash, users start by earning 1% cash back on their Venmo Debit Mastercard when spending from their Venmo balance. Rewards increase to 2% for users who enable auto-reloads and can reach 5% cash back on Direct Deposits each month.
Instead of typical category-based cash back, Venmo allows users to choose curated bundles of favorite brands. Options include groups like McDonald’s, TikTok Shop, Uber, and Uber Eats, or Amazon, DoorDash, Domino’s, and Walgreens.
Next year, Venmo Stash plans to expand further, offering rewards when users make payments at participating merchants nationwide. By tailoring rewards to consumer habits and favorite brands, Venmo aims to strengthen its ecosystem and compete more effectively in the growing debit card rewards market.
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