Amazon Removes Venmo as Payment Method, Causing PayPal Shares to Drop

By Jace Dela Cruz

Dec 08, 2023 12:10 AM EST

In a notice sent out on Wednesday, Amazon has informed its users that it will stop accepting Venmo as a payment method starting January 10.

According to CNBC, this decision marks an unexpected turn, considering that Amazon had announced the addition of Venmo as a payment option at checkout last October to provide customers with more flexibility in their payment choices.

"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," Venmo said in a statement.

(Photo : ERIC PIERMONT/AFP via Getty Images)
The logo of online payment company PayPal is pictured during LeWeb 2013 event in Saint-Denis near Paris on December 10, 2013.

No More Venmo on Amazon

According to the notice received by Amazon customers, while Venmo will no longer be an accepted payment method, Amazon will continue to support Venmo debit and credit cards for transactions. 

Venmo acknowledged this change in a separate notice posted on its website, mentioning that due to recent changes, users can no longer add Venmo as a payment method on Amazon. However, those who currently have Venmo enabled in their Amazon wallet will still be able to use it until January 10, 2024.

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Market Reaction

This unexpected development had an impact on PayPal, the parent company of Venmo, as its shares experienced a 1.7% decline in the stock market on Thursday following the announcement, CNBC reported. 

The move to remove Venmo as a payment option on Amazon has prompted some market reaction, highlighting the interconnectedness and influence that major e-commerce platforms can have on the financial performance of payment service providers.

While the notices from both Amazon and Venmo confirmed the change, neither provided detailed reasons for this decision. In response to inquiries, Amazon noted that shoppers would still have access to "nearly a dozen other payment methods." 

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