Venmo rolls out new debit card perks and retail payment options as Cash App stumbles

Venmo is stepping up its game to become more than just an app for splitting bills or paying friends.

On Wednesday, the PayPal-owned platform announced a set of upgrades to its Venmo Debit Card and expanded payment options at major retailers, signaling its ambitions to be a full-service fintech solution.

The updated Venmo Debit Card — first launched in 2018 — now supports tap-to-pay, making it more convenient for everyday use. Cardholders also enjoy 15% cash back at popular brands like Lyft, McDonald’s, Sephora, Walgreens, and Walmart.

Venmo has also added a feature for automatic transfers, allowing users to schedule reloads or set balance thresholds that trigger deposits automatically. Another notable addition: international purchases are now free of foreign transaction fees, catering to frequent travelers.

Beyond the card, Venmo now enables payments at several high-profile merchants, including Domino’s, Instacart, TikTok Shop, and Uber — extending its reach beyond peer-to-peer transactions.

These enhancements come at a time when rival Cash App is showing signs of slowing. Parent company Block revealed a Q1 gross profit of $1.38 billion, which fell short of expectations due to declining consumer engagement.

Meanwhile, Venmo’s momentum continues, with a 20% year-over-year revenue increase, 50% growth in payment volume, and 30% rise in monthly active accounts.

That said, Venmo still faces tough competition from Zelle, which processed over $1 trillion in payments in 2024, maintaining a strong foothold in the U.S. peer-to-peer payments market.

Venmo’s latest move reflects its ongoing efforts to carve out a bigger share of both the retail payments and fintech landscapes, appealing to users who want more than just a way to send money to friends.