Micro-Investment App Stash Adds Stock-Back Rewards to Debit Card

The choice between using a debit card and a credit card isn't always so simple for consumers. Although the former is often seen as a more financially wise choice, most debit cards don't offer the same kinds of perks that many credit cards do. In response to this conundrum, a number of FinTech firms have started rolling their own debit card products that seek to reward users in some interesting and inventive ways. Joining that line-up is Stash, which recently announced a new bonus for its debit cardholders As Business Insider reports, Stash is adding Stock-Back rewards to its debit card product. The card itself is a result of the firm's partnership with Green Dot and offers users free access to select ATMs and other perks without charging any monthly fees. Now the card will also allow customers to earn fractional shares of stock for their shopping. According to Stash, cardholders can earn Stock-Back rewards at any store in the United States. If the location is part of a publically traded company, that stock is what will be issued to users. In the case of small businesses and other privately held companies, customers will instead be issued fractional shares of ETFs selected by Stash. Currently the amount of stock Stash card users will earn will vary greatly — between 0.125% and 5%. While the smaller amount will be the base, Stash is in the process of arranging deals with various brands to offer bigger bonuses to customers. For example purchases from Starbucks and Dunkin' Donuts will earn 2% while payments made to Spotify and Netflix will gain users 5% Stock-Back. Business Insider notes that they expect Stash to land more exclusive deals as the company promotes the customer loyalty benefits such a program offers. While Stash's Stock-Back perk is certainly creative, it's not entirely unheard of. Another FinTech app called Bumped utilizes a similar concept to award users with fractional shares of stock while encouraging loyalty for its participating brands. Among a few notable differences between Bumped and Stash's Stock-Back is the fact that Bumped allows users to link various credit and debit cards that can be used to earn stock while Stash's program is limited to their proprietary debit card. Stash's Stock-Back program is a great example of several on-going FinTech trends. Beyond the debit card initiative that's permeating through the industry, it also speaks to the efforts Stashs, Acorns, Robinhood, and others have made to introduce younger adults to investing in stocks. Of course, if things go well, this particular perk could also be a win for brands willing to test out the loyalty benefits of this arrangement. All this makes for a product to watch as Stash Stock-Back rolls out.

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