Amazon.com Inc (NASDAQ:AMZN) will no longer allow customers to use Venmo to pay for purchases on its eCommerce site, sending shares of the PayPal Holdings Inc (NASDAQ:PYPL)-owned payments company lower on Thursday.
In an email to customers, Amazon said Venmo will no longer be an accepted payment method as of January 10, 2024. It will still accept Venmo debit and credit cards.
“Due to recent changes, Venmo can no longer be added as a payment method,” Venmo confirmed in a statement on its website.
“Venmo will remain available to users who currently have it enabled in their Amazon wallet until 01/10/24.”
This comes just over a year after Amazon began offering Venmo as a payment option at checkout in October 2022.
In a statement to the media, PayPal spokesperson Joshua Criscoe said that the two companies had agreed to disable Venmo as a payment option on Amazon at this time.
“We have a strong relationship with Amazon and look forward to continuing to build on it,” Criscoe said.
Founded in 2009, Venmo is a popular payment service that allows users to transfer funds to one another instantly.
PayPal shares closed down 1.8% on Thursday but recovered slightly in premarket trade on Friday, adding 0.3% at US$58.68.
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