Amazon will be adding a Venmo option during the checkout process. Paypal announced on its website that this option will be available for all its users in the United States starting 2022.
Amazon's Venmo Option
The news arrived as PayPal announced its third-quarter results. The online payment company stated that it had a 13% annual revenue increase, according to The Verge.
Starting 2022, all Amazon customers in the United States will be able to link their Venmo accounts to their Amazon accounts. They can link them on both the desktop version and the mobile app version of the e-commerce giant.
Ben Volk, Amazon's Director of Global Payment Acceptance, stated that they understand their customers who want flexibility and options in purchasing the items they bought on Amazon.
Volk added that they've always wanted to give their shoppers the ability to pay using different modes of payment as they want to provide them with a new way to pay for their purchases, and teaming up with Venmo can fulfill that goal.
The deal is mutually beneficial for both companies. PayPal has more than 80 million users, and that is just in the United States alone.
The company's recent behavior study shows that 65% of Venmo users stated that they'd increased their online purchases despite the coronavirus pandemic in 2020.
The study also shows that 47% want to pay using their Venmo accounts, especially when checking out with online merchants.
Many are now anticipating whether the service will be utilized since most Amazon shoppers are more comfortable paying using their credit cards.
Amazon's current slate of payment options includes credit cards, debit cards, store cards, and checking accounts, EBT cards, HSA cards, or FSA cards.
Amazon has also allowed palm-scanning payment at WholeFoods for faster transactions.
PayPal is not currently supported as a payment option on Amazon, so the addition of Venmo is a win for the company.
PayPal's integration with Amazon next year can give the much-awaited cryptocurrency feature to the e-commerce giant.
In March, PayPal announced that consumers in the United States would be given the option to check out businesses via cryptocurrencies.
Meanwhile, Venmo recently expanded its support for cryptocurrency through its new features that let users purchase cryptocurrency using cash-back from Venmo credit card purchases.
However, it is not an assurance that the plan will push through. While Amazon is hiring for a head of digital currency and blockchain technology, it has also recently shut down rumors about plans to begin accepting crypto as payments.
TechCrunch reported that PayPal hinted that its partnership with Amazon would not include cryptocurrency.
The company said in a statement that the announcement is only about enabling Venmo consumers in the United States to pay with Venmo during the checkout process. They want to continue to grow this upcoming partnership, but there is no other update at this time.
The announcement regarding the partnership with Amazon came after a woman from Tulsa, Oklahoma, warned others that the online payment company freezes accounts.
Venmo responded by saying that their system freezes the account if the account is not fully verified, according to Newson6. With this issue still ongoing, Amazon shoppers should verify their accounts early to avoid any issues with their funds.
This article is owned by Tech Times
Written by Sophie Webster