PayPal has some big news for Amazon shoppers. Starting next year, users of their Venmo payments app will be able to make purchases on the e-commerce giant’s website and mobile app.
The new alliance between the two digital giants was revealed during PayPal’s recent quarterly earnings report. As RetailDive points out, this is a big win for Venmo in an “increasingly competitive payments market.”
The Details Are Coming
PayPal Chief Executive Dan Schulman told Wall Street analysts during the earnings conference call that his company’s new alliance with Amazon will have both short and long-term benefits. Considering the e-commerce giant’s hold on the U.S. market, Schulman said that PayPal “couldn’t be more pleased to be able to team with Amazon.”
Schulman believes the partnership will increase “the addressable market for Pay with Venmo,” which will be one of Venmo’s “key revenue drivers” going forward.
“I think about the journey that Venmo has been on—this obviously is a punctuation point for sure,” Schulman said.
The details about the agreement are still being worked out. Which means, an official launch date has yet to be determined. But, we do know that Amazon will start accepting Venmo sometime in 2022.
PayPal Was Linked To eBay For Nearly Two Decades
At the dawn of the e-commerce era back in 2002, eBay acquired PayPal for $1.5 billion. Over the next decade plus, the two sites worked hand-in-hand, with more than 70 percent of all eBay auctions accepting PayPal payments. And, approximately 25 percent of closed auction listings transacted via PayPal.
In 2015, they split into two separate companies while honoring the existing agreement that kept PayPal as eBay’s primary payments processor. However, the two companies announced in 2018 that they would not renew their agreement, and it has now expired.
Schulman said that PayPal’s agreement with eBay was holding back their growth potential, and they are excited to move on.
“This is obviously a very significant moment in our Venmo monetization efforts and marks the beginning of an exciting journey with Amazon, now that we are no longer constrained by the contractual obligations of the eBay operating agreement,” he said.
PayPal Is Now A Payment Option At Walmart And GoFundMe
In addition to their partnership with Amazon, PayPal has also scored a big win with Walmart and GoFundMe. Walmart now offers the PayPal payment option for both its marketplace and grocery, and GoFundMe now accepts donations via the PayPal app.
PayPal has also added their QR codes to thousands of gas stations across the country thanks to a new deal with oil companies Valero and Phillips 66.