Venmo has unveiled a new rewards initiative called Venmo Stash, designed to give users cash back when they spend with their favorite brands and use Venmo’s financial products. The program offers up to 5% cash back, credited directly to customers’ Venmo Mastercard Debit Card.

The company aims to strengthen user engagement and encourage long-term loyalty by keeping funds circulating within the Venmo ecosystem.

A New Approach to Debit Rewards

Unlike traditional credit card cashback programs, Venmo Stash targets younger users who prefer debit cards over credit cards. According to a 2024 eMarketer report, only 39% of Gen Z frequently use credit cards, compared to 51% of older generations. Another Morning Consult survey for Cash App Afterpay found that 63% of Gen Z favor debit cards as their main payment method.

This shift has prompted payment platforms like Venmo, PayPal, Cash App, and Klarna to focus on debit-based rewards and flexible payment options such as Buy Now, Pay Later (BNPL) services.

How Venmo Stash Works

Venmo’s program increases cash back as users engage more with its services:

• 1% cash back for purchases made with a Venmo Debit Mastercard using Venmo balance.
• 2% cash back when auto reloads are turned on to maintain balance automatically.
• 5% cash back for users who receive Direct Deposits on Venmo each month.

Instead of offering rewards by spending categories like gas or groceries, Venmo lets customers choose from curated brand bundles.

For example, one bundle may include McDonald’s, TikTok Shop, Uber, and Uber Eats, while another could feature Amazon, DoorDash, Domino’s, and Walgreens. This personalized approach gives users more control over where they earn rewards.

Competing in a Growing Cash Back Market

Venmo’s parent company, PayPal, sees Stash as a way to compete directly with Cash App’s Boost offers, which reward users through Cash App debit card spending.

In the long run, Venmo plans to expand the program beyond in-app purchases. The company confirmed that in 2026, Stash will extend to partner merchants nationwide, allowing users to earn cash back when paying with Venmo at checkout.

Venmo Stash highlights the growing competition among payment apps to attract Gen Z and Millennial users who prefer debit over credit. By combining personalization, simplicity, and meaningful rewards, Venmo is positioning itself as a leading platform in the evolving digital payments landscape.