PayPal shares slide after Amazon drops Venmo as payment option

The Venmo emblem displayed on a smartphone.

Pavlo Gonchar | SOPA Images | LightRocket through Getty Images

Amazon notified customers late Wednesday it is going to quickly cease accepting Venmo as a payment methodology.

The firm mentioned it is going to not let customers pay utilizing Venmo starting Jan. 10, in accordance with a discover despatched out to Amazon prospects. Amazon will nonetheless settle for Venmo debit and bank cards, the discover states. Venmo introduced the transfer in a separate discover posted to its website.

“Due to latest adjustments, Venmo can not be added as a payment methodology,” the corporate mentioned. “Venmo will stay obtainable to customers who at present have it enabled of their Amazon pockets till 01/10/24.”

Shares of PayPal, which owns Venmo, slid greater than 1% in early buying and selling Thursday.

The transfer is an abrupt reversal. Amazon announced final October it will add Venmo as a payment methodology at checkout, giving customers extra choices to pay for his or her purchases. Venmo is a well-liked payment service that lets customers immediately ship cash to 1 one other.

An Amazon spokesperson confirmed the change and mentioned customers will nonetheless be capable of use “almost a dozen different payment strategies.” The firm did not elaborate on why it’s eradicating Venmo as a payment methodology.

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