Amazon drops Venmo payment option
Amazon is dropping Venmo as a payment option starting next month.
Effective January 24, Amazon users will no longer be able to use Venmo on the company's website or its mobile app, the Seattle-based e-commerce giant confirmed to FOX Business.
The company said that customers will still be able to "use nearly a dozen other payment options," including debit cards, credit cards, checking accounts, or installments to pay for their orders, according to Amazon.
PARENTS SHIFT TO VENMO, PAYPAL, ZELLE TO PAY TEENS
Venmo was founded in 2009 and acquired by PayPal in 2013.
A PayPal spokesperson told FOX Business that both companies agreed to disable the payment option. However, "customers can continue to add their Venmo debit card or credit card to their Amazon wallet to pay on Amazon," the spokesperson said.
MONEY KEPT IN PAYPAL, VENMO, OTHER PAYMENT APPS LESS SAFE THAN IF STORED IN BANKS, CFPB WARNS
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It sees this business as an area where it can drive profitable revenue growth. To date, brands including McDonald's, Starbucks, Domino’s, DoorDash, Uber, Microsoft and GoFundMe have added Venmo as a payment option at checkout.
PayPal reported that Venmo's total payment volume rose by 7% to $68 billion in the third quarter.