Venmo, widely known for helping friends split dinner bills and birthday gifts, is shifting its identity from a peer-to-peer payments app to a full-service commerce platform.
The PayPal-owned service rolled out several key updates aimed at embedding itself into consumers’ daily spending habits both online and in-store.
The overhaul includes a major upgrade to the Venmo Debit Mastercard, expanded checkout availability across major retailers, and a rebranding campaign that signals the company’s ambition to compete more aggressively in the fintech space.
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“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, Executive Vice President and General Manager of PayPal’s Consumer Group.
The redesigned debit card now offers users up to 15% cash back when shopping at top retailers including Walmart, Sephora, McDonald’s, Walgreens, and Lyft. Offers can be activated directly within the app. The card also supports tap-to-pay transactions, international purchases without foreign transaction fees, and automatic reload when a user’s balance drops below a set threshold.
This is part of Venmo’s broader effort to evolve from its roots in peer payments and catch up with competitors like Cash App, which has gained a stronghold in the space. While Venmo’s debit card penetration remains in the single digits, Cash App has reached 44% of its users with its card, a sharp contrast highlighted in recent market analysis.
Despite those numbers, Venmo has made strides. Transaction volume from its debit card hit $13 billion in 2024, and total payment volume climbed to $75.9 billion. Use of the “Pay with Venmo” feature surged by 50%, and active debit card users rose by around 40%. Monthly active accounts on the platform also grew by 30% year-over-year.
The company has also made its checkout option available at an expanded slate of merchants, including TikTok Shop, Uber, Instacart, and Domino’s. Major brands such as DoorDash, Starbucks, and Ticketmaster already accept Venmo as a payment option. The company hopes that this growing merchant network and increased cashback incentives will encourage more users to treat Venmo as a default payment method, not just a transfer tool.
PayPal CEO Alex Chriss has made monetizing acquisitions like Braintree and Venmo a top priority. He recently noted that over 45% of U.S. branded checkout volume now goes through PayPal’s updated interface — a number expected to increase with the company’s expansion in Europe. He also highlighted growing debit card momentum, with nearly two million people using a PayPal or Venmo debit card for the first time last quarter, marking a 90% increase year-over-year.
While Venmo and Cash App have both lost ground in the U.S. peer-to-peer payment market as Zelle’s share rose to 66%, Venmo is betting on its loyal user base, brand recognition, and social features to fuel the next phase of its growth.
By integrating everyday rewards, broadening merchant partnerships, and updating the user experience, Venmo is making a clear play to move from a casual utility to a primary financial tool—especially for younger, mobile-first users looking for convenience, perks, and flexibility in how they manage and spend their money.