Future of Investing

Stash launches Stock-Back, a cash-back rewards program that bridges savings and investing

  • Stash's popular investing app will offer cash-back on spending in the form of stock.
  • Stock-Back will automatically build portfolios of the companies where customers spend money.

Email a Friend

Stash launches Stock-Back, a cash-back rewards program that bridges savings and investing

Stash has unveiled its own flavor of cash back rewards program. Stock-Back automatically invests in the companies where Stash debit card holders spend money. So, if a Stash user shops at Amazon, she’ll accrue factional shares in AMZN. If he eats at McDonalds, he’ll automatically become an MCD shareholder.

“Our ability to give customers the opportunity to save and build portfolios that mirror their spending behavior and preferences is incredibly powerful,” said Stash co-founder and president, Ed Robinson.


View this post on Instagram


It’s not too good to be true—it’s Stock-Back™, earned when you shop. Learn more at link in bio!

A post shared by Stash (@stash_app) on

Stock-Back has been in a limited beta release for the past few months and Robinson told Tearsheet that Stash made over 100,000 allocations of stock rewards during this period.

Stock-Back rewards are tiered:

  • 5 percent stock-back at Netflix and Spotify
  • 2 percent at Starbucks and Dunkin’
  • 12.5 basis points for all other swipes or 25 bps if a customer has direct deposit turned on in her Stash account

“We’ve seen so much interest during the testing period for Stock-Back,” he said. “It creates so much community and social sharing. Our users are changing the way they spend, building portfolios, and telling other people about it. Those people are coming to us, asking if they can get access to Stock-Back, too.”

Stash gets into banking: Along with its reward program, Stash is officially launching banking services. Powered by Green Dot’s Banking as a Service Platform, Stash users will get access to a debit account with no overdraft or monthly maintenance fees, as well as ASAP Direct Deposit which enables customers to get paid up to two days early.

“In the U.S., people aren’t used to receiving any rewards from their debit cards,” Robinson said. “The most powerful thing to Stock-Back and using the Stash debit card is you get dividends, build a portfolio, and get access to growth just by living your life.”

Unifying financial services: By offering a bank account, Stash continues to blend the lines between banking and investing.  To help people save and invest more, the popular investment app recently added services like rounding up purchases to sweeping cash to an investment account. As Stash moves into banking, it mirrors the moves of challenger banks that are expanding their offerings into investing.

Robinson frequently cites the statistic that 80 percent of Americans live paycheck to paycheck. It’s these people that Stash is designed for.

“How do you break this trend? With technology, education, and removing fees,” he said. “A bank account and investment account should naturally sit next to each other. When you spend less one month, you should be moving money into your investment account. When you help the average American put a few bucks away every month, you start to beat the statistics.”

Also, kaching: Stash also announced a Series E investment of $65 million. The funding will be used to increase product growth and propel brand awareness.

0 comments on “Stash launches Stock-Back, a cash-back rewards program that bridges savings and investing”

Future of Investing, Podcasts

Broadhaven Ventures’ Michael Sidgmore on global trends in embedded finance

  • The future of financial services will be driven by non-financial companies that add a financial services layer to serve engaged, frequent users.
  • The pandemic will accelerate the digitization of underlying tech infrastructure and consumer habits, causing long-lasting behavioral shifts.
Suman Bhattacharyya | July 21, 2020
Future of Investing

During pandemic, Personal Capital sees customer inflows, positive feedback for recent rebrand

  • Investment platform Personal Capital rebranded in October 2019.
  • The results of the rebrand, a new marketing campaign, and COVID-19 are all contributing to the firm's growth.
Zoe Murphy | April 23, 2020
Future of Investing

2019: Year of the fintech inflection

  • The fintech market is undergoing changes as investors tweak their strategies.
  • Growth stage companies are seeing a bigger share of the pie, as are emerging markets.
Zoe Murphy | February 19, 2020
Future of Investing, Podcasts

Titan’s Clayton Gardner: ‘We want to make sure we’re building cars, not faster horses’

  • While most robo-advisers have embraces passive investment strategies, Titan has taken a contrarian approach.
  • Its clients turn to the investment app for reasonably-priced hedge fund strategies.
Zack Miller | October 28, 2019
Future of Investing

JMP Securities’ Devin Ryan on the impact of free trading on financial services

  • Over the past few weeks, major brokerages have eliminated brokerage fees.
  • Devin Ryan, MD at JMP, joins us to discuss what the future of financial services looks like.
Zack Miller | October 21, 2019
More Articles