Venmo adds debit card perks, checkout options in push to catch rival Cash App

Venmo, long known for helping friends split dinner bills and birthday gifts, is jumping into the heart of consumer commerce.

The PayPal-owned platform on Wednesday rolled out several updates designed to move beyond peer-to-peer transfers, transforming Venmo into a more robust fintech tool for everyday spending.

The changes include upgraded rewards for Venmo Debit Mastercard users, expanded checkout options at major retailers, and a new brand campaign aimed at positioning Venmo, which has more than 64 million monthly active users, as a full-service commerce platform.

"We're transforming from a payments app into a full-service commerce experience for users to spend their balance on everything, in-store and online," said Diego Scotti, EVP and general manager of PayPal's Consumer Group.

It's a shift that sees Venmo trying to catch up to rivals in a key fintech growth area and capture more of the daily consumer wallet.

Venmo's debit card penetration is still in the single digits, compared to 44% of users for Cash App, according to Bernstein. And while Venmo debit card transaction volume totaled $13 billion, Cash App's reached a massive $152 billion in 2024.

PayPal has doubled down on competing with platforms like Cash App. On a recent earnings call, PayPal CEO Alex Chriss said more than 45% of U.S. branded checkout now runs through the company's upgraded experience — a figure the company expects to climb further as it expands across Europe.

He also pointed to strong debit card momentum, with nearly two million people using a PayPal or Venmo debit card for the first time last quarter, a 90% increase from the year prior.

Venmo is accelerating on multiple fronts but still has areas to improve.

Revenue grew 20% year over year, though PayPal didn't break out a dollar figure. Total payment volume for Venmo increased 10% to $75.9 billion. Transaction volume for Pay with Venmo climbed 50%, and monthly active users of the Venmo debit card rose about 40%.

Chriss has made it a priority to better monetize acquisitions like Braintree and Venmo. Major brands including DoorDash, Starbucks and Ticketmaster now accept Venmo at checkout, a move that further integrates the app into daily consumer spending.

Venmo and Cash App have both lost share in U.S. peer-to-peer payments over the past year as Zelle surged to 66% of market volume, up from 55% in 2019. Venmo now holds 19%, down from 21% last year, signaling the pressure to expand beyond basic transfers.

Venmo is banking on its brand recognition, social roots, and user loyalty to drive adoption among younger, mobile-first consumers.

The updated Venmo Debit Card now offers 15% cash back at major retailers including Sephora, Walmart, Lyft, McDonald's, and Walgreens, with offers activated directly in the app. Cardholders can also tap to pay in stores using their mobile wallets, make purchases internationally without foreign transaction fees, and enable auto-reloads when balances drop.

In parallel, Venmo is expanding its presence at checkout.

The ability to pay with Venmo is now live at brands like TikTok Shop, Uber, Instacart, and Domino's. The company hopes this growing merchant network will further entrench Venmo as a go-to payment method—especially at a time when consumers are seeking both convenience and rewards.

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