Venmo Stash Debuts: Earn Up to 5% Cash Back on Debit

Venmo launched a new rewards program called Venmo Stash on Monday, offering US users up to 5% cash back on its Mastercard Debit Card to incentivize app engagement and capture a growing market of debit-first shoppers.

Targeting Gen Z’s Shift Away From Credit Cards

While cash-back incentives are traditionally associated with credit cards, Venmo is targeting its debit cardholders with this new initiative. The program aims to keep funds circulating within the platform’s ecosystem while appealing to younger consumers who increasingly reject traditional credit.

Recent market data highlights this behavioral shift. A 2024 study cited by eMarketer revealed that only 39% of Gen Z consumers frequently use credit cards, compared to 51% of older demographics. Similarly, a Morning Consult survey conducted for Cash App Afterpay earlier this year found that 63% of Gen Z users prefer debit cards over other payment methods.

To adapt to these changing preferences, retailers and payment processors are rolling out debit rewards and alternative checkout solutions, such as “buy now, pay later” (BNPL) options like PayPal Pay Later, Affirm, and Klarna.

How Venmo Stash Rewards Loyal Users

The Venmo Stash program is structured to reward users who deepen their engagement with the platform’s suite of financial products. This strategic setup allows Venmo to defend its market share against rivals offering similar debit rewards, such as Cash App’s popular Boost offers.

The Tiered Cashback Structure

The cashback earnings are divided into three distinct tiers depending on user activity:

1% Cash Back: Earned initially when customers spend their existing Venmo balance using the Venmo Debit Mastercard.

2% Cash Back: Unlocked when users enable the auto-reload feature, which automatically replenishes their account balance.

5% Cash Back: The highest tier, reserved for customers who set up monthly Direct Deposits to their Venmo account.

Curated Brand Bundles and Future Plans

Unlike standard financial reward programs that offer percentage-based cash back on broad spending categories like dining, groceries, or gas, Venmo Stash utilizes a brand-specific model. Cardholders select from curated bundles featuring popular retailers and services.

For example, users can choose a bundle containing brands like Uber, Uber Eats, McDonald’s, and TikTok Shop. Alternatively, they can opt for a package that includes Amazon, DoorDash, Domino’s, and Walgreens.

The PayPal-owned platform plans to expand Venmo Stash next year. This upcoming expansion will allow users to earn cash-back rewards when paying with Venmo directly at participating merchants across its extensive nationwide network.