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\u2019s products. <\/p>\n
While cashback rewards are a common incentive for credit cards, Venmo\u2019s rewards \u2014 which can be up to 5% \u2014 are returned to Venmo\u2019s Mastercard Debit Card.<\/p>\n
The program is designed to incentivize continued use of Venmo\u2019s service by bringing more funds into the ecosystem, the company explains. <\/p>\n
However, this program also represents a new way that today\u2019s brands are attempting to reach younger users, many of whom have shown a preference for debit cards over credit cards.<\/p>\n
One 2024 study cited by eMarketer<\/a> indicated that only 39% of Gen Z users reported frequent credit card use, compared with 51% for older generations. Another Morning Consult survey for Cash App Afterpay from earlier this year<\/a> noted that 63% of Gen Z users said they favored debit cards over other payment methods.<\/p>\n As a result, payment providers and retailers are looking to accommodate younger consumers by rolling out more debit rewards and by offering alternatives at checkout \u2014 like the use of \u201cbuy now, pay later\u201d (BNPL) services such as Affirm, PayPal Pay Later, or Klarna.<\/p>\n In Venmo\u2019s case, the program is designed to offer larger rewards as customers interact more with Venmo products. This keeps them invested in the Venmo ecosystem, the company believes. <\/p>\n
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ScreenshotImage Credits:Venmo<\/p>\n