Amazon is dropping Venmo as a payment option next month, the PayPal owned mobile payment service announced on its website. The official announcement comes as Amazon notified users last night via email that Venmo will no longer be accepted on Amazon.com starting January 10, 2024. Amazon will still, however, accept Venmo debit and credit cards.
“Due to recent changes, Venmo can no longer be added as a payment method,” Venmo’s notice on its website reads. “Venmo will remain available to users who currently have it enabled in their Amazon wallet until 01/10/24. ”
Since the new was announced, PayPal’s shares have dropped by around 2%.
The reversal comes just over a year after Amazon announced that it would start allowing customers to make payments through Venmo on its website. At the time, the online retail giant said it wanted to offer customers payment options that were convenient and easy-to-use.
For Venmo, the deal meant that the company could move beyond P2P payments and grow its revenue through transaction fees through retail purchases. Although the integration didn’t roll out until October 2022, PayPal announced that it had reached a deal with Amazon back in 2021 that would allow users to pay with Venmo. It then took a year for the integration to roll out.
Amazon has not disclosed why it has decided to no longer offer Venmo as a payment method.
Amazon spokesperson Alyssa Bronikowski told TechCrunch in an email that “customers can still use nearly a dozen other payment options, such as debit cards, credit cards, checking accounts, or installments to pay for their orders.”