Venmo on Monday introduced a new rewards program, Venmo Stash, offering cash back to customers who transact with their favorite brands on the payments app and engage with Venmo’s products. While cashback rewards are a common incentive for credit cards, Venmo’s rewards — which can be up to 5% — are returned to Venmo’s Mastercard Debit Card. The program is designed to incentivize continued use of Venmo’s service by bringing more funds into the ecosystem, the company explains. However, this program also repre ...

Core Insights - Venmo is evolving from a peer-to-peer payment app to a comprehensive consumer commerce platform, aiming to enhance everyday spending capabilities [1][2] - The platform has over 64 million monthly active users and is introducing features like upgraded rewards for Venmo Debit Mastercard users and expanded checkout options at major retailers [2] Group 1 - Venmo's debit card penetration is currently in the single digits, significantly lower than Cash App's 44% user penetration [3] - In 2024, Venmo's debit card transaction volume reached $13 billion, while Cash App's transaction volume was $152 billion [3] - PayPal is intensifying competition with Cash App, with over 45% of U.S. branded checkout now utilizing PayPal's upgraded experience [4] Group 2 - PayPal reported a 90% increase in new users of PayPal or Venmo debit cards in the last quarter, with nearly two million first-time users [4]