Amazon, the mobile payment service owned by PayPal, announced on its website that it will drop Venmo as a payment option next month. Amazon notified users via email last night that as of January 10, 2024, Venmo will no longer be accepted on the Amazon website. Amazon will still accept Venmo debit and credit cards, though.
"Due to recent changes, Venmo can no longer be added as a payment method," a notice on the Venmo website reads. "Users who currently have Venmo enabled in their Amazon Wallet will still be able to use Venmo until 10/1/24."
PayPal shares are down about 2% since the new news was announced.
PayPal's stock price reversed course more than a year after Amazon announced it would allow users to pay via Venmo on its site. At the time, the online retail giant said it wanted to provide customers with convenient and easy-to-use payment methods.
For Venmo, the deal means the company can move beyond peer-to-peer payments and increase revenue through transaction fees on retail purchases. While the integration won't launch until October 2022, PayPal announced a deal with Amazon as early as 2021 to allow users to pay with Venmo. After that, the integration took a year to roll out.
Amazon did not disclose why it decided to no longer offer Venmo as a payment method.
Amazon spokesperson Alyssa Bronikowski said in an email that "customers can still pay for their orders using nearly a dozen other payment methods, such as debit card, credit card, checking account or installment payment."