Venmo Launches New Rewards Program, Venmo Stash
Venmo has announced the launch of a new rewards program called Venmo Stash, which offers cash back to customers who engage with their favorite brands on the payments app and use Venmo’s products. This initiative aims to incentivize continued use of Venmo’s services by bringing more funds into the ecosystem.
While cashback rewards are a common feature for credit cards, Venmo’s rewards can go up to 5% and are returned to Venmo’s Mastercard Debit Card. This program not only encourages customer loyalty but also represents a new way for brands to target younger users who have shown a preference for debit cards over credit cards.
Studies have shown that Gen Z users are more inclined towards debit cards, with only 39% reporting frequent credit card use compared to 51% for older generations. As a result, payment providers and retailers are adapting to cater to this demographic by offering more debit rewards and alternative payment methods like “buy now, pay later” services.
Venmo’s rewards program offers larger incentives as customers engage more with Venmo products, ensuring that they remain invested in the Venmo ecosystem. This initiative also competes with other cashback programs offered by Venmo’s competitors, such as Cash App’s offers for its own debit card customers.
Initially, customers can earn 1% cash back for their Venmo Debit Mastercard by spending their Venmo balance. This percentage increases to 2% when customers enable auto-reloads to automatically replenish their balance. Customers can earn up to 5% cash back by receiving Direct Deposits on Venmo each month.
Unlike traditional cashback programs based on spending categories like groceries or dining, Venmo’s program allows customers to choose from curated bundles of their favorite brands. For example, customers can select a bundle that includes popular brands like McDonald’s, TikTok Shop, Uber, and Uber Eats, or one with Amazon, DoorDash, Domino’s, and Walgreens.
Looking ahead, Venmo plans to expand the Venmo Stash program to offer rewards to customers who pay with Venmo at merchants within its nationwide network in the coming year.
