PayPal has announced a partnership with Amazon to integrate Venmo as a payment option at checkout for US consumers.
The consumers can utilise the funding methods that include their linked bank account and Venmo balance. PayPal’s new feature will be available for Amazon purchases on its website and the app. Amazon supports purchases that are made through credit, debit, and gift cards. The new service will be accessible to consumers at the beginning of 2022
The e-Commerce company partnered with Affirm this year to provide monthly instalment plans for splitting the cost for an item. For now, Amazon doesn’t accept any payments directly through PayPal.
Ben Volk, director of global payment acceptance at Amazon said, “Our customers want options and flexibility in purchasing on Amazon. We’re excited to team up with Venmo and give our customers the ability to pay using Venmo accounts and provide new ways to pay on Amazon”.
The partnership is beneficial for both parties as PayPal carries 80 million users in the US alone.
About 65% of Venmo users increase their online purchases while 47% are interested in using it to pay merchants
A recent Venmo Behaviour study showed that 65% of Venmo users have increased their online purchasing behaviours amid the pandemic. Some 47% of users are interested in paying using Venmo when checking out with merchants.
Darrell Esch, senior vice president and general manager at Venmo said, “Over the last year, we have focused on giving our Venmo community more ways to use Venmo in their daily lives, including the ability to pay with QR codes and providing more shopping features like purchase protection”. He added, “We’re thrilled to make it possible for our users and Amazon customers to pay with Venmo starting next year”.
The new Venmo’s integration with Amazon can bring a much-awaited crypto edge to the eCommerce company.
Last March, PayPal said US customers can check out hundreds of businesses using cryptocurrencies. Venmo expanded its market for cryptocurrency enthusiasts as it announced new features that allow consumers to buy cryptocurrency using cash-back offered from Venmo credit card purchases.
This might be the option for PayPal to expand the crypto sector, but Amazon recently shut down rumors about plans to start accepting crypto as payments. PayPal hinted that the upcoming partnership does not include crypto, owing to Venmo’s currently limited integration with the currencies.
“It enables customers in the U.S. to pay with Venmo at checkout. We look forward to continuing to grow this relationship,” the company said.