Venmo has launched a new rewards program called Stash that allows users to earn rewards for activities like receiving direct deposits or shopping with participating retail partners. However, this program does not apply to Venmo’s primary peer-to-peer payments service.
Stash Rewards Program Details
The Venmo Debit Mastercard currently provides 1% cash back on purchases made from the card balance and 2% with auto reloads. Stash is aimed at encouraging customers to keep more funds in their accounts, offering up to 5% cash back for those who receive eligible direct deposits of at least $500.
Retention Focus
“Venmo’s new reward plan is about retention as much as increasing spending,” said Ben Danner, a Senior Analyst from Javelin Strategy & Research. He explained that by incentivizing auto reloads and direct deposits, Venmo hopes to make the platform a primary vehicle for consumer payments.
Curated Brand Bundles
A new feature within Stash lets cardholders select from curated bundles of their favorite brands to earn up to 5% cash back on Venmo debit card purchases. Users can choose from groups including McDonald’s, TikTok Shop, and Uber.
Peer-to-Peer Payments
Venmo currently does not offer rewards for making peer-to-peer payments, which remains the platform’s core offering. According to CoinLaw, Venmo is projected to hold a 61.8% share of U.S. mobile P2P payment users in 2025 with over 100 million customers.
Expanding Stash Ecosystem
Venmo is exploring ways to expand the Stash ecosystem by allowing consumers to earn rewards for using Venmo at its network of nationwide merchants next year.
Targeting Younger Consumers
Venmo is also working on improving its debit card offering. CNBC reported last summer that penetration among Venmo users remains low, with only a small percentage opting for the debit card compared to 44% of Cash App users.
The move aligns with Venmo’s strategy to attract younger consumers, who often prefer debit cards over credit cards. A recent survey by Morning Consult found that 63% of Gen Z have switched from using credit cards to alternatives like debit cards and buy now pay later (BNPL) services.
