FinTech News
Venmo Introduces Stash Rewards Program for Debit Cards
Venmo is reinventing its debit card rewards, allowing cardholders to earn up to 5% back.
About Venmo Stash Rewards:
This week, Venmo announced its new Venmo Stash program. With this unique debit card rewards offering, customers will be able to earn up to 5% back on purchases from popular brands — with their rewards rate increasing as they deepen their Venmo relationship.
First, cardholders can earn 1% cashback on purchases in their selected bundle of brands by default. Those who opt into autoreloads can up this rewards amount to 2%. Finally, Venmo customers who receive at least $500 per month in Direct Deposits can earn 5% back on brands in their chosen bundle. However, a maximum of $100 cashback can be earned per month regardless of earning rate.
As for what these bundles are, each includes a mix of retail, restaurants, and more — each meant to appeal to an array of cardholder lifestyles and spending habits. Members will be able to change their bundle selection every 30 days. Example bundles offered at launch include:
Bundle 1
- Target
- McDonald’s
- TikTok Shop
- Uber
- Uber Eats
Bundle 2
- DoorDash
- Amazon
- Walgreens
- Domino’s
Bundle 3
- Walmart
- Taco Bell
- Lyft
- GameStop
- ESPN
Looking ahead, Venmo says that it will expand Stash to include other rewards options.
What They’re Saying:
Announcing Venmo Stash, the GM of consumer at PayPal Diego Scotti stated, “Traditional rewards programs make customers work for points they may never use. Venmo Stash flips that model — rewarding spending and money management habits our customers have already built with Venmo.”
Scotti added, “Our cash back multiplier allows us to grow adoption and usage of our different products and recognize our customers for doing more with more value back to them.”
My Thoughts:
I actually think that this Venmo Stash rewards program is pretty clever in its execution. For one, it gives customers an obvious incentive to increase their Venmo usage. On top of that, the mix of brands in each bundle appears well-tailored in that they’re attractive enough to be valuable to cardholders but diverse enough that there’s not an obvious pick overall.
Of course, while I like what Venmo is doing here, I think that their sister brand PayPal has the better debit card at the moment. With the PayPal debit card, you can earn 5% back in a selected spending category each month (up to $1,000 in spending). Plus, this cashback stacks with other offers in the PayPal app.
Still, I’m interested to see how Venmo Stash expands in the coming year and how Venmo can leverage the program to gain ground in the competitive payments field.
Author
Other Articles by Kyle Burbank
Economic News
Credit Card News
Fanatics to Launch Rewards Credit Card with American Express
American Express and Fanatics have announced a partnership that will not only result in a new rewards credit card but will also lead to a new option for other cardholders. About the Fanatics American Express Card: This week, Amex revealed that it was teaming up with the sports merchandise site Fanatics. As part of this partnership, the two will create the Fanatics American Express Card. According to a press release,...
Personal Finance News
