Venmo Launches Cash Back Rewards Program For Debit Cards

Venmo connected Monday introduced a caller rewards program, Venmo Stash, offering rate backmost to customers who transact pinch their favourite brands connected nan payments app and prosecute pinch Venmo’s products.

While cashback rewards are a communal inducement for in installments cards, Venmo’s rewards — which tin beryllium up to 5% — are returned to Venmo’s Mastercard Debit Card.

The programme is designed to incentivize continued usage of Venmo’s work by bringing much costs into nan ecosystem, nan institution explains.

However, this programme besides represents a caller measurement that today’s brands are attempting to scope younger users, galore of whom person shown a penchant for debit cards complete in installments cards.

One 2024 study cited by eMarketer indicated that only 39% of Gen Z users reported predominant in installments paper use, compared pinch 51% for older generations. Another Morning Consult study for Cash App Afterpay from earlier this year noted that 63% of Gen Z users said they favored debit cards complete different costs methods.

As a result, costs providers and retailers are looking to accommodate younger consumers by rolling retired much debit rewards and by offering alternatives astatine checkout — for illustration nan usage of “buy now, salary later” (BNPL) services specified arsenic Affirm, PayPal Pay Later, aliases Klarna.

In Venmo’s case, nan programme is designed to connection larger rewards arsenic customers interact much pinch Venmo products. This keeps them invested successful nan Venmo ecosystem, nan institution believes.

It besides competes pinch different cashback incentives offered by Venmo’s rivals, like Cash App’s offers, which are doled retired to its ain Cash App debit Card customers.

ScreenshotImage Credits:Venmo

Initially, customers gain 1% rate backmost for their Venmo Debit Mastercard erstwhile they walk their Venmo balance. Rewards turn to 2% erstwhile customers move connected car reloads to support their equilibrium replenished automatically. And customers are capable to gain 5% rate backmost erstwhile they person Direct Deposits connected Venmo each month.

However, alternatively of offering a definite percent backmost by spending category, for illustration groceries, gas, aliases dining, Venmo’s programme has customers prime from curated bundles of their favourite brands. For instance, you could prime a group of brands that includes McDonald’s, TikTok Shop, Uber, and Uber Eats, aliases 1 that offers Amazon, DoorDash, Domino’s, and Walgreens.

The PayPal-owned institution says that, adjacent year, nan Venmo Stash will grow to connection customers rewards erstwhile they salary pinch Venmo astatine merchants wrong its nationwide network.