Venmo introduces a rewards program for its debit card users
PayPal has introduced a Venmo cash back rewards program that the company is calling Venmo Stash. The program is designed to scale rewards with user engagement, offering more cash back to those who use more of the platform's suite of products.
The rewards are earned when users spend on their Venmo Debit Mastercard, but only at “curated bundles” of certain brands. Unless users are judicious about only using their Venmo debit cards at these brands, this could mean a net monthly cash back far below what is advertised.
In the company’s announcement, Paypal depicts brands like McDonald’s, TikTok Shop, Uber and Uber Eats bundled together, while another bundle shows Amazon, DoorDash, Domino's and Walgreens. Users can change their bundle of brands every 30 days.
Cash back tiers start at 1 percent when users spend at their chosen brands, scaling to 2 percent when auto reloads are turned on to keep a balance in Venmo. The highest tier is 5 percent cash back, which requires customers to receive monthly Direct Deposits on Venmo of at least $500. PayPal says it will be introducing more ways to earn rewards next year.
The fine print for Venmo Stash mentions a monthly reward cap, the amount of which is only visible during the enrollment process. Once this cap is reached, no more rewards can be earned until the next calendar month.
PayPal has been making moves lately in hopes of enticing new customers. Earlier this year it offered a free year of Perplexity Pro to its users, along with early access to the AI powered Comet browser.This article originally appeared on Engadget at https://www.engadget.com/big-tech/venmo-introduces-a-rewards-program-for-its-debit-card-users-170807513.html?src=rss