In a surprising turn of events, Amazon has announced that it will no longer accept Venmo as a payment option starting next month. The popular mobile payment service, owned by PayPal, revealed this news on its website, sparking disappointment among its users.
Amazon’s decision to remove Venmo as a payment option starting next month will impact mobile payment users, who have enjoyed the convenience of using Venmo for their Amazon purchases. While Venmo debit and credit cards will still be accepted, this move emphasizes the importance of exploring alternative payment methods for Amazon shoppers.
The Official Announcement and Implications
Amazon sent out an email notification to its users, officially stating that Venmo will be excluded as a payment method on Amazon.com from January 10, 2024. However, it’s worth noting that Venmo debit and credit cards will still be accepted.
Venmo itself explained the situation on their website, stating, “Due to recent changes, Venmo can no longer be added as a payment method. Venmo will remain available to users who currently have it enabled in their Amazon wallet until 01/10/24.”
According to PayPal spokesperson Joshua Criscoe, both Venmo and Amazon mutually agreed to disable Venmo as a payment option for now. However, customers can still add their Venmo debit or credit cards to their Venmo wallet to proceed with payments on Amazon. PayPal remains optimistic about its continued partnership with Amazon, focusing on strengthening their business relationship going forward.
The Market Reaction and Background
The news of Venmo’s removal as a payment option has had an immediate impact on PayPal’s shares, causing a decline of approximately 2%. This reversal comes merely a year after Amazon initially announced its decision to allow customers to use Venmo for payments on its website, emphasizing the importance of providing convenient and user-friendly payment options.
For Venmo, the deal with Amazon was seen as an opportunity to expand beyond peer-to-peer payments and generate additional revenue through transaction fees for retail purchases. While the integration only became available in October 2022, PayPal had already reached an agreement with Amazon in 2021 to enable Venmo payments. The integration process took a year to complete.
Responding to the development, Amazon spokesperson Alyssa Bronikowski clarified that despite the removal of Venmo, customers still have a wide range of payment alternatives. These include debit cards, credit cards, checking accounts, or even installment plans. Amazon supports various payment methods from major networks such as Visa, Mastercard, American Express, JCB, Discover, and more.