Venmo Unleashes Next Phase of Commerce with the Venmo Debit Card and Venmo Checkout

Rhea-AI Summary

Venmo announces major expansion of its commerce capabilities, introducing enhanced rewards and features for its Venmo Debit Mastercard. The platform reports strong Q1 2025 performance with 20% YoY revenue growth, 50% increase in Pay with Venmo usage, and 30% growth in monthly active accounts. The Venmo Debit Card sees 40% growth in monthly active cardholders. New features include up to 15% cash back rewards at major retailers like Sephora, Walmart, and Lyft, tap-to-pay functionality, automatic balance transfers, and international payment capabilities with no fees. The company launches 'Venmo Everything' campaign featuring Aimee Lou Wood and Patrick Schwarzenegger to promote these new commerce solutions. Venmo expands its checkout presence across major platforms including TikTok Shop, Uber, and Instacart, transforming from a peer-to-peer payment app into a comprehensive commerce platform serving over 64 million monthly active U.S. accounts.

Positive

• Revenue grew 20% year-over-year in Q1 2025
• Pay with Venmo payment volume increased over 50%
• Monthly active accounts up 30%
• Monthly active cardholders increased 40%
• New 15% cash back rewards program with major retailers
• Expanded checkout presence across major platforms like TikTok Shop, Uber, and Instacart
• No international transaction fees on purchases

Negative

• Cash back rewards are limited-time offers with $8 monthly maximum per merchant
• Venmo is not a bank and does not offer direct FDIC insurance

Insights

Fintech Payments Analyst

PayPal's Venmo shows strong growth metrics and strategic pivot to commerce, positioning for revenue diversification beyond P2P payments.

The Venmo expansion marks a significant strategic pivot from pure peer-to-peer payments toward becoming a comprehensive commerce platform. The Q1 metrics are impressive - revenue growth of 20% year-over-year, Pay with Venmo total payment volume surging 50%, monthly active accounts up 30%, and debit card monthly active users increasing 40%.

This commerce expansion tackles two critical challenges for PayPal's Venmo business. First, it addresses the monetization limitations of the P2P payments model, which historically generated minimal revenue despite high engagement. Second, it positions Venmo to capture a greater share of user spending beyond just money transfers, extending their presence throughout the consumer purchase journey.

The enhanced rewards structure (up to 15% cash back at major retailers) represents an aggressive customer acquisition strategy, though the long-term unit economics will depend on merchant funding for these rewards versus Venmo's own margin sacrifice. The emphasis on automatic balance funding and international acceptance directly targets increasing transaction frequency and average ticket size.

This evolution puts Venmo in more direct competition with neobanks, traditional banks, and even parent company PayPal's core wallet. The strategy creates brand differentiation through social payment features while expanding toward a full digital banking experience. The high-profile marketing campaign signals confidence in the product-market fit and readiness to scale these commerce capabilities to Venmo's 64 million monthly active users in the US.

New Brand Campaign Reinforces Accelerated Expansion of Commerce Solutions with Enhanced Rewards In-Store and Online

SAN JOSE, Calif., June 4, 2025 /PRNewswire/ -- Venmo, a leading social payments platform, today announced an accelerated expansion of its commerce capabilities, introducing even more benefits for customers to use their Venmo balance beyond peer-to-peer payments - from everyday purchases to earning enhanced rewards in-store and online with the Venmo Debit Mastercard®¹.

Venmo has been a go-to solution for sending money to family and friends, with over 64 million U.S. accounts using Venmo every month to split meals, send birthday gifts, and pay their portion of rent and utilities. Now, with consumers looking to simplify their financial lives and optimize their spending, Venmo is evolving into a more flexible and rewarding way to spend a Venmo balance on everything from rideshares to cookware.

Venmo's growth is continuing to accelerate as more consumers use their balances for everyday commerce. In the first quarter, Venmo revenue grew 20 percent year-over-year. Pay with Venmo usage surged, with total payment volume up more than 50 percent, and monthly active accounts are up 30 percent. The Venmo Debit Card is also gaining momentum, with monthly active cardholders up 40 percent as more people use it to pay in-store and online.

"Not only does Venmo deliver best-in-class peer-to-peer payment experiences, but 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, General Manager – Consumer Group. "Venmo users trust Venmo to move money, so we're making it easier – and more rewarding – to spend and live their lives with an app that moves as fast as they do."

A More Rewarding Way to Pay
Just in time for summer, Venmo is supercharging its debit card rewards with new, limited-time cash back² offers at some of its users' favorite brands. Venmo Debit Card users can now earn 15% cash back from Sephora, Walmart, Lyft, McDonald's, and Walgreens by activating their offers in the Venmo app to earn cash back on their eligible purchases in-store and online.

Venmo Debit Card users can also enjoy these added features:

• Tap-to-Pay: Add the Venmo Debit Card to your mobile wallet to conveniently tap-to-pay in-store.
• Automatically add funds: Easily manage and top up your Venmo balance by setting up automatic transfers—either on a preset schedule or when your balance drops below a certain point.
• Pay internationally: Use the Venmo Debit Card for purchases anywhere Mastercard is accepted around the world, with no international transaction fees on purchases.
• Pass-through FDIC Insurance: With your Venmo Debit Card, your USD Venmo funds are held in Program Banks, where they are, subject to certain conditions, eligible for pass-through FDIC insurance up to $250,000 at each Program Bank. FDIC insurance protects against the failure of a Program Bank, not Venmo. Venmo is not a bank, does not take deposits, and is not FDIC-insured. See Venmo User Agreement.

Pay with Venmo In-App and Online
Venmo has also expanded its presence at checkout in-app and online, making it easier than ever to pay with Venmo at a wide range of top brands, such as TikTok Shop, Uber, Instacart, Domino's, and many more.

Introducing 'Venmo Everything'
To further accelerate the adoption of the Venmo Debit Card and checking out with Venmo, the brand has launched a high-energy brand campaign starring Aimee Lou Wood and Patrick Schwarzenegger, set to a reimagined version of the iconic rap song, "The Choice is Yours." Debuting today, the campaign features a vibrant brand film that follows Wood and Schwarzenegger as they seamlessly pay for everything – from everyday essentials like groceries to extras like records and hats – in-store and online.

View the full ad starring Aimee Lou Wood and Patrick Schwarzenegger here.

"Everybody I know uses Venmo. For splitting costs for dinners, concert tickets and vacations, so I had to get Aimee Lou on board to make her life easier," says Schwarzenegger. "As an entrepreneur, I'm really serious about my 'rewards game,' so it's a win I can earn cash back when I pay with the Venmo Debit Card. I love a rewards hack."

"Hanging out with my lovely friend, Patrick, I quickly found out that Venmo is a go-to way for people in the States to send money to friends, but it's so much more than that," says Wood. "As an Aquarius, I tend to be quite clever with money, so I love that you can earn some serious cash back when you spend your balance with the Venmo Debit Card – that means another astrology reading for me!"  

The fully integrated campaign goes live today and will run across culturally relevant touchpoints, including social media, network TV during the NBA finals, podcasts, and gaming platforms to help expand consumers' understanding of all the ways they can spend with Venmo.

¹ The Venmo Mastercard® is issued by The Bancorp Bank, N.A., pursuant to license by Mastercard International Incorporated. Card may be used everywhere Mastercard is accepted. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated. The Bancorp Bank, N.A. is issuer of the Card only and not responsible for the associated accounts or other products, services, or offers from Venmo.  

² Max $8 avail. monthly per participating merchant. See terms at venmo.me/helpcenter.

About Venmo
Venmo is the go-to money movement app of the next generation, offering fast, safe, and social payments. With best-in-class experiences for users to send, split, shop, and sell, Venmo enables a seamless flow of money between the people and places that matter most to millions of users across the United States. For more information, go to: Venmo.com.  

Media Relations Contact
v-press@paypal.com

 

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SOURCE PayPal Holdings, Inc.

FAQ

What are the new cash back rewards for Venmo Debit Card in 2025?

Venmo Debit Card offers 15% cash back at Sephora, Walmart, Lyft, McDonald's, and Walgreens, with a maximum of $8 available monthly per participating merchant.

How much did Venmo's revenue grow in Q1 2025?

Venmo's revenue grew 20% year-over-year in the first quarter of 2025.

How many active users does Venmo have in 2025?

Venmo has over 64 million U.S. accounts using the platform monthly.

What new features are available with the Venmo Debit Card?

New features include tap-to-pay functionality, automatic balance transfers, international payments with no fees, and FDIC insurance eligibility through Program Banks.

Which major platforms now offer Venmo checkout?

Venmo checkout is available on TikTok Shop, Uber, Instacart, Domino's, and other major platforms.

What is Venmo's new brand campaign about?

The 'Venmo Everything' campaign features Aimee Lou Wood and Patrick Schwarzenegger showcasing how Venmo can be used for everyday purchases both in-store and online.