Big news for online shoppers who love the convenience of Venmo! It appears the brief honeymoon between Amazon and Venmo is coming to an abrupt end. Just over a year after announcing with fanfare that Venmo would be accepted at checkout, Amazon has decided to pull the plug on this payment option. If you’re a Venmo user on Amazon, you need to know about this change, and fast!
What’s Going On? Amazon and Venmo Say Goodbye
Starting January 10th, you will no longer be able to use Venmo to pay for your purchases on Amazon. This news comes directly from Venmo itself, which sent out notices to users about the upcoming change. It’s a surprising turn of events, especially considering the initial excitement when Amazon announced in October 2022 that Venmo would be joining the lineup of payment methods.
Here’s a quick rundown of what we know:
- Venmo is being removed as a payment option on Amazon. This means you won’t be able to add it as a new payment method to your Amazon wallet anymore.
- Deadline: January 10th. If you already have Venmo enabled in your Amazon wallet, you can still use it until January 10, 2024. After that, it will no longer work.
- Venmo debit and credit cards are still accepted. Don’t worry, you can still use your physical Venmo cards on Amazon, it’s just the direct Venmo account payment that’s being discontinued.
- Official Notices: Both Venmo and Amazon have confirmed this change, though details are still a bit scarce.
Amazon is removing Venmo as a payment option effective January 10th, 2024 pic.twitter.com/11Eq29TzCd
— queeerjoy (@queeerjoy) December 6, 2023
You can even see the official notice directly on Venmo’s help page, which mentions “recent changes” as the reason behind this decision. However, neither company has explicitly detailed what these “recent changes” are.
Why the Sudden Breakup? Possible Reasons Behind Amazon’s Decision
So, why is Amazon reversing course on Venmo so quickly? While neither Amazon nor Venmo has given a definitive reason, analysts are speculating that it might boil down to one key factor: low adoption rates.
Think about it. When the partnership was launched, the idea was to tap into Venmo’s popularity, especially among younger demographics. For PayPal, Venmo’s parent company, it was a chance to better monetize Venmo and expand its reach. For Amazon, it was about attracting a younger customer base. However, according to analysts at Evercore Inc., it seems that consumers simply weren’t flocking to use Venmo at Amazon checkout in the numbers expected.
Here’s a table summarizing the potential reasons:
| Possible Reason | Explanation |
|---|---|
| Low Adoption Rate | Consumers may not have widely adopted Venmo as their preferred payment method on Amazon, leading to low usage volume. |
| Transaction Fees | Disagreements over transaction fees between Amazon and PayPal could have played a role. |
| Shifting Strategies | Both Amazon and PayPal may have re-evaluated their strategic priorities and decided this partnership no longer aligns with their long-term goals. |
| Technical Issues | Although less likely, there could have been unforeseen technical challenges in integrating and maintaining Venmo as a seamless payment option on Amazon’s massive platform. |
It’s also worth noting that PayPal, in general, has been facing some headwinds. As people return to in-store shopping and grapple with inflation, there’s been a slowdown on some of PayPal’s platforms. The company is even undergoing a restructuring with a new CEO and a focus on different business units.
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What Does This Mean for You, the Amazon Shopper?
For most Amazon shoppers, this change might be a minor inconvenience, especially if you weren’t a regular Venmo user on the platform. Amazon still offers a wide range of payment options. As an Amazon spokesperson pointed out, you can still use “nearly a dozen other payment methods.”
Here are some of the payment alternatives you can use on Amazon:
- Credit and Debit Cards (Visa, Mastercard, American Express, Discover, etc.)
- Amazon Store Cards
- Amazon Pay
- Checking Accounts
- Gift Cards
- Buy Now, Pay Later options
So, while Venmo direct payments are going away, you’re certainly not short on ways to pay on Amazon.
PayPal’s Perspective and Market Reaction
Unsurprisingly, the news of Amazon dropping Venmo wasn’t welcomed by investors. Shares of PayPal saw a dip after the announcement, highlighting the market’s sensitivity to these kinds of partnership changes. However, a Venmo spokesperson stated that they have a “strong relationship with Amazon and look forward to continuing to build on it.” This suggests that while direct Venmo payments are ending, the overall relationship between the two companies might still have other dimensions.
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In Conclusion: A Short Chapter for Amazon and Venmo
The Amazon-Venmo payment partnership, while initially promising, appears to be ending sooner than many anticipated. Whether it was due to low adoption, strategic shifts, or other undisclosed reasons, the bottom line is that from January 10th, Venmo will no longer be a direct payment option on Amazon. While this might disappoint some Venmo loyalists, Amazon shoppers still have a plethora of other convenient payment methods to choose from. It serves as a reminder that in the fast-paced world of e-commerce and digital payments, even seemingly solid partnerships can be subject to change.
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