Venmo has started a new rewards program called “Venmo Stash” that gives cash-back rewards to people who use their Mastercard debit card. This change brings a common credit card benefit to debit cards: cash back of up to 5%. The program aims to get people to keep using Venmo and do more business with it.
Understanding the new Venmo debit card rewards
This new rewards system for the Venmo debit card has different levels that let customers earn more money the more they use Venmo’s products. When users spend money from their Venmo balance, they get 1% cash back on purchases made with their Venmo Debit Mastercard.
When customers turn on the auto-reload feature, which automatically adds money to their Venmo balance, the rewards rate goes up to 2%. To get the most cash back (5%), customers must set up and receive a qualifying direct deposit into their Venmo account every month.
This Venmo debit card rewards program is different from other ones that give you a set percentage back on things like groceries or gas. It gives users a selection of curated bundles of well-known brands to choose from. For example, one bundle might have brands like Uber, Uber Eats, McDonald’s, and TikTok Shop, while another might have Amazon, DoorDash, Domino’s, and Walgreens. This lets users choose the brand groups that fit their lifestyle and spending habits the best.
The Venmo debit card rewards program is an example of a payment provider changing to meet the needs of younger customers. Recent research indicates that Gen Z users strongly favor debit cards over credit cards. A study from 2024 found that only 39% of Gen Z users said they used credit cards often, while 51% of older generations said they did. Another survey found that 63% of Gen Z respondents preferred debit cards as their way to pay.
PayPal, the company that owns Venmo, has said that it will add more rewards to the Venmo debit card program next year. The company said that Venmo Stash will grow to give customers rewards when they pay directly with Venmo at stores in its nationwide network.
This planned growth puts Venmo in a better position to compete with cash-back offers from competitors like Cash App, which offers similar deals to its own debit card customers. This means that people who use the Venmo card every day can now get more rewards for their purchases.
