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PayPal's Venmo Stash Expansion: Will This Drive More Transactions?
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Key Takeaways
PayPal expands Venmo's Stash program, offering up to 5% cash back on select merchant purchases.
Venmo adds brands like Sephora, Ulta, Taco Bell and Pizza Hut to grow its merchant network.
Venmo Debit Card and checkout boasts double-digit growth in transactions and active accounts.
PayPal Holdings’ (PYPL - Free Report) Venmo is expanding its rewards program, Stash, offering customers a new opportunity to earn cash back on daily purchases from select lifestyle brands. Whether grabbing dinner with friends, taking a rideshare or buying a new outfit, those everyday moments just got more rewarding. The more customers spend with Venmo, the greater rewards they get.
In addition to Venmo Debit Mastercard purchases, customers can now earn up to 5% cash back by using Venmo at select merchants within their selected bundle. This expansion simplifies converting everyday purchases into real monthly rewards.
Venmo's merchant network is expanding rapidly beyond Stash, with fresh additions like Sephora, Ulta, Taco Bell and Pizza Hut. These are the brands that shape how younger generations shop, eat and live, and increasingly, how they pay.
The Venmo Debit Card and its checkout experience have become the top products of the platform, boasting double-digit year-over-year growth in transaction volume and monthly active accounts. Stash, which was first launched by Venmo in November 2025, channels this energy, bridging daily purchases with real rewards.
Venmo is positioned as the preferred money movement platform for the young, affluent and digitally native consumers. In March 2026, Venmo announced a major expansion, extending its peer-to-peer payment experience to users worldwide. Venmo users can now send and receive money to/from hundreds of millions of PayPal users across 90 markets. This marks Venmo's largest market expansion since the app’s launch.
How Are Block and Chime Doing in This Space?
Block’s (XYZ - Free Report) Cash App’s “Boosts” program gives instant discounts or cash back like savings at restaurants, grocery stores and other merchants when you pay with the Cash App card. In addition, its “Cash App Green” tier unlocks 5 custom cash back style offers every Friday and other perks, effectively creating a rewards style loop on daily purchases.
Chime Financial, Inc. (CHYM - Free Report) offers customers a compelling reward system through its SpotMe overdraft protection, providing fee-free advances up to $200 on debit card purchases with qualifying direct deposits. Additionally, users earn cash-back rewards at select partner retailers and enjoy boosted limits via early paycheck access, fostering loyalty among fintech users seeking everyday financial perks.
PYPL’s Price Performance, Valuation & Estimates
Shares of PayPal have declined 13.4% in the past three months, underperforming the broader industry. The S&P 500 Index increased compared with the stock.
Image Source: Zacks Investment Research
From a valuation standpoint, PayPal’s shares are trading cheaply, as suggested by the Value Score of A. In terms of forward 12-month P/E, PYPL stock is trading at 9.10X, which is at a significant discount to the Zacks Financial Transaction Services industry’s 16.91X.
Image Source: Zacks Investment Research
PayPal’s estimate revisions reflect a negative trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised downward over the past two months.The consensus estimate for the metric indicates no change year over year.
View the Zacks #1 Rank List
Image: Bigstock
PayPal's Venmo Stash Expansion: Will This Drive More Transactions?
Key Takeaways
PayPal Holdings’ (PYPL - Free Report) Venmo is expanding its rewards program, Stash, offering customers a new opportunity to earn cash back on daily purchases from select lifestyle brands. Whether grabbing dinner with friends, taking a rideshare or buying a new outfit, those everyday moments just got more rewarding. The more customers spend with Venmo, the greater rewards they get.
In addition to Venmo Debit Mastercard purchases, customers can now earn up to 5% cash back by using Venmo at select merchants within their selected bundle. This expansion simplifies converting everyday purchases into real monthly rewards.
Venmo's merchant network is expanding rapidly beyond Stash, with fresh additions like Sephora, Ulta, Taco Bell and Pizza Hut. These are the brands that shape how younger generations shop, eat and live, and increasingly, how they pay.
The Venmo Debit Card and its checkout experience have become the top products of the platform, boasting double-digit year-over-year growth in transaction volume and monthly active accounts. Stash, which was first launched by Venmo in November 2025, channels this energy, bridging daily purchases with real rewards.
Venmo is positioned as the preferred money movement platform for the young, affluent and digitally native consumers. In March 2026, Venmo announced a major expansion, extending its peer-to-peer payment experience to users worldwide. Venmo users can now send and receive money to/from hundreds of millions of PayPal users across 90 markets. This marks Venmo's largest market expansion since the app’s launch.
How Are Block and Chime Doing in This Space?
Block’s (XYZ - Free Report) Cash App’s “Boosts” program gives instant discounts or cash back like savings at restaurants, grocery stores and other merchants when you pay with the Cash App card. In addition, its “Cash App Green” tier unlocks 5 custom cash back style offers every Friday and other perks, effectively creating a rewards style loop on daily purchases.
Chime Financial, Inc. (CHYM - Free Report) offers customers a compelling reward system through its SpotMe overdraft protection, providing fee-free advances up to $200 on debit card purchases with qualifying direct deposits. Additionally, users earn cash-back rewards at select partner retailers and enjoy boosted limits via early paycheck access, fostering loyalty among fintech users seeking everyday financial perks.
PYPL’s Price Performance, Valuation & Estimates
Shares of PayPal have declined 13.4% in the past three months, underperforming the broader industry. The S&P 500 Index increased compared with the stock.
Image Source: Zacks Investment Research
From a valuation standpoint, PayPal’s shares are trading cheaply, as suggested by the Value Score of A. In terms of forward 12-month P/E, PYPL stock is trading at 9.10X, which is at a significant discount to the Zacks Financial Transaction Services industry’s 16.91X.
Image Source: Zacks Investment Research
PayPal’s estimate revisions reflect a negative trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised downward over the past two months.The consensus estimate for the metric indicates no change year over year.
Image Source: Zacks Investment Research
PayPal currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.