Venmo will no longer continue as a payment method on Amazon as the e-commerce giant will stop accepting the payment service on 10 January.
This comes only two months after Amazon announced Venmo as a checkout payment method last October. CNBC confirmed that PayPal’s shares – which owns Venmo – dropped 1.7% once Venmo confirmed the exit from Amazon.
A Venmo spokesperson told CNBC: “We have a strong relationship with Amazon and look forward to continuing to build on it.“
Venmo has reminded users that back-funded transactions using the service will still typically take up to one to three business days to settle, alluding to the date Amazon will stop accepting payments in January.
The exit of Venmo on Amazon may come as a blow to the 90 million users of the payment service as it not only holds a significant user base, but also provides an additional payment method in an e-commerce space that has been continually diversifying.
Speaking to Payment Expert, Ken Serdons, CCO at Mollie, explained why it is crucial for e-commerce platforms must offer a range of payment methods to acquire and retain customers.
He said: “According to our latest European Ecommerce Report, offering consumers their favourite payment methods is the most important thing you can do to boost conversion.
“In fact, four in five (80%) consumers say this is important to them when shopping online. Every consumer has a favourite payment method, so it’s vital to provide the ones they prefer to use.”
Despite not being a payment method on Amazon from next year onwards, Venmo’s comments to CNBC infer that the two parties still have a working relationship.
