Users were notified of this change via email. The decision, as cited by Venmo, is a result of recent changes, preventing the addition of Venmo as a payment method. However, Amazon will continue to accept Venmo debit and credit cards. According to PayPal officials, both Venmo and Amazon have mutually agreed to disable Venmo as a payment option for Amazon purchases. However, they expressed confidence in the ongoing strong relationship between PayPal and Amazon, anticipating further collaboration.
Following this announcement, PayPal's shares experienced a decline of approximately 2% according to TechCrunch. This decision marks a reversal from just over a year ago when Amazon had announced its intention to allow customers to use Venmo for payments on its website. Amazon's objective was to offer customers convenient and user-friendly payment options. The integration of Venmo for payments on Amazon was implemented in October 2022, following a deal reached between PayPal and Amazon in 2021. The partnership aimed to expand Venmo's revenue streams beyond peer-to-peer transactions to include retail purchase transaction fees.
Representatives from Amazon confirmed that customers still have access to numerous alternative payment options, such as debit cards, credit cards, checking accounts, or instalment payments. Amazon supports various payment methods from networks including Visa, Mastercard, American Express, and JCB, Discover.
In August 2023, Hallmark revealed a collaboration with Venmo, introducing the Hallmark + Venmo Cards for their user base. This partnership facilitated the inclusion of Venmo funds within physical Hallmark cards, offering a secure and expeditious method for users to transmit money to acquaintances, friends, or family.
The synergy between Hallmark's array of services and Venmo's straightforward payment mechanisms aimed to improve the efficiency of the gift-sending process for customers. The Hallmark + Venmo Cards provided users with a tangible card containing funds via Venmo, eliminating the necessity for cash or checks and providing a practical solution for gifting.
In the same month, France-based cashback app Shopmium integrated with Venmo to expand its cashback redemption offering. Through this partnership, Shopmium users gained the ability connect and use their Venmo accounts to receive cashback deposits.
Since launching in the US in 2022, shoppers have only been able to receive cash back from Shopmium through their PayPal account. With this expanded method of cashback redemption, Shopmium users were able to choose how they want to receive their cash back.
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