Why Amazon Is Disabling Venmo Payments Starting January 2024

Amazon has officially announced that it will stop accepting Venmo as a payment option starting January 10, 2024. This decision comes as a change to their payment integration, and while Venmo debit and credit cards will remain valid, users will no longer be able to directly pay using their Venmo balance. Here’s a detailed breakdown of this change, its impact on customers, and the alternatives available.

When and Why Amazon Is Dropping Venmo as a Payment Option

Amazon first introduced Venmo as a payment method in late 2022. This addition aimed to offer more flexibility and convenience to its users, allowing them to utilize Venmo for retail purchases, moving beyond its traditional use for peer-to-peer transactions.

However, just over a year later, Amazon announced that Venmo would no longer be accepted as a direct payment option on its platform. This change marks a significant shift in the payment landscape for Amazon users.

Key Date: January 10, 2024, has been set as the final day that Venmo will be accepted for payments on Amazon. After this date, users will need to explore alternative payment options.

Venmo’s Notice: According to Venmo, customers who currently have Venmo enabled in their Amazon wallets can continue using it until the deadline. After January 10, 2024, the Venmo payment option will no longer be functional on Amazon.com.

Reason for the Decision: The exact reasons behind this decision remain unclear, as neither Amazon nor Venmo has provided detailed explanations. However, PayPal, Venmo’s parent company, noted that both companies mutually agreed to discontinue Venmo as a payment method. This suggests strategic changes on both sides, possibly tied to broader operational goals.

What Happens to Venmo Users on Amazon?

If you currently use Venmo to pay on Amazon, here’s what will happen:

• Before January 10, 2024:

  • You can continue to use Venmo as a payment method if it is already set up in your Amazon wallet.
  • Any purchases made will be processed as usual.

• After January 10, 2024:

  • Venmo will no longer be available as a direct payment method on Amazon.
  • However, you can still use Venmo debit or credit cards to make purchases on the platform.

PayPal and Venmo’s Official Statements

PayPal’s spokesperson, Joshua Criscoe, commented on the decision, stating:

“Venmo and Amazon have agreed to disable Venmo as a payment option to pay on Amazon at this time. Customers can continue to add their Venmo debit card or credit card to their Venmo wallet to pay on Amazon. We have a strong relationship with Amazon and look forward to continuing to build on it.”

While the integration provided Venmo a chance to grow beyond person-to-person (P2P) payments, this change highlights Amazon’s shift in its payment strategy.

Financial and Strategic Impact

The removal of Venmo from Amazon’s payment options has broader implications:

1. Impact on PayPal Shares: Following the announcement, PayPal’s stock price dropped by approximately 2%, signaling investor concerns over Venmo’s lost revenue from transaction fees.
2. Venmo’s Revenue Growth: Venmo had previously aimed to expand its usage in retail purchases through its partnership with Amazon. This reversal limits its growth in the e-commerce sector.
3. Amazon’s Payment Strategy: Amazon may be simplifying its payment system, focusing on methods that align more closely with its operational goals.

Alternatives for Paying on Amazon

Although Venmo will no longer be a direct payment option, users can still shop on Amazon using other methods, including Venmo’s debit and credit cards.

Options Available to Users:

• Venmo Debit Card: Link your Venmo debit card to your Amazon wallet for seamless payments.
• Venmo Credit Card: Add this to your Amazon payment options to continue benefiting from Venmo’s features.
• Other Accepted Payments: Use traditional payment methods such as credit/debit cards, Amazon gift cards, or Amazon Pay.

Steps to Add a Venmo Card to Amazon Wallet:

1. Open the Amazon app or website and go to Your Account.
2. Select Payment Options under the Your Payments section.
3. Tap Add a Payment Method and input your Venmo debit or credit card details.
4. Save the card to use it for future purchases.

Conclusion

Amazon’s decision to stop accepting Venmo starting January 10, 2024, marks a significant change for users relying on the platform for easy transactions. While Venmo as a direct payment option is going away, users can still use their Venmo debit or credit cards to make purchases on Amazon.