Venmo, the peer-to-peer (P2P) payments platform from PayPal, is rolling out a cash-back rewards program for its Venmo Mastercard debit card at certain retailers, Venmo announced in a press release on Tuesday (Oct. 29).
Venmo Rewards is now offering 5 percent cash back at Target, Sephora, Chevron and Papa Johns, and 4 percent cash back at Dunkin’, Sam’s Club and more for a limited time. Cash-back offers will be changed on an ongoing basis but users can always see where the deals are by using the Venmo app.
Venmo users can track their earned rewards in the “my feed” section of the mobile app and choose the share the rewards from featured merchants in the Venmo feed.
Cash back will be deposited straight into users’ Venmo accounts, and from there, the money can be used to pay friends in the app, buy things using the card or pay merchants that take Venmo. The cash back can also be deposited in a user’s bank account.
PayPal uses the Dosh cash-back platform to manage the Venmo program.
Venmo is also soon launching Payouts, which will let businesses directly pay consumers through Venmo.
Venmo Payouts was tested with Chipotle and PepsiCo with success and will roll out to more companies in the coming weeks.
Earlier this month, PayPal announced it was teaming with Synchrony Financial to roll out a Venmo co-branded credit card next year, marking a first for the P2P money transfer platform.
“For 15 years, Synchrony has been a strategic partner in offering credit cards that enable greater purchasing power and rewards for PayPal consumers,” said PayPal CEO Dan Schulman. “We are pleased to deepen our relationship with Synchrony to bring groundbreaking new credit experiences to the Venmo community through a desirable credit card and a seamless in-app experience.”
Users will be able to use and manage their accounts natively in the Venmo app. Cardholders will also be able to split and share purchases. Data analytics will be used to create “personalized shopping and payment experiences” for its users.
The Venmo Mastercard debit card was launched in 2018.