Venmo to Become Payment Option on Amazon in 2022

In today’s PayPal earnings report, the company announced that it has entered into an agreement with Amazon to enable Venmo users to checkout on Amazon in 2022.

Don’t Miss

• Do you need a business bank account for your online business? Have a look at our review of the five best bank accounts for sellers, some of which are free with no minimum balance or deposits.
• AI can change your entire social media game today. Learn how you can save time writing engaging content faster. ^[sponsored]
• How to lower your taxable income and pay less in taxes. ^[sponsored]
• ‘My Community Made’ is a new marketplace to compete with Etsy and Amazon Handmade.
• EXCLUSIVE: Interview with Chris Prill, VP eBay Motors, discussing the new Guaranteed Fit program.

Also, PayPal said volume for eBay declined 45% last quarter and now only represents 3% of its Total Payments Volume (TPV) or less than 4% percent of its overall revenues.

“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’re no longer constrained by the contractual obligations of the eBay operating agreement.”

Dan Schulman, CEO, PayPal during earnings call

The company didn’t provide a launch time frame, only saying they are eager to get this out into the marketplace, but there is still some work to do.

PayPal also wasn’t specific in the earnings call if the Venmo integration with Amazon was for US only, but they did reference the US market potential of Amazon to its business.

And, there was no word if PayPal could eventually become part of the Amazon checkout process as well. Often, new features or opportunities that start on one platform eventually seem to make it to the other.

In addition to the Amazon news, Paypal also said that Walmart now accepts PayPal for both of their grocery and marketplace business and GoFundMe added PayPal as well, with Venmo following in the coming months.

In other words, PayPal and Venmo are popping up in places that previously were not possible.

PayPal Split From eBay Opened Doors to Add More Marketplaces

Being able to bring PayPal and Venmo to other marketplaces was part of the original reason why eBay investors pushed the eBay Board to split PayPal into a separate company.

The upside potential for PayPal was always huge, but its growth was constraint by its relationship with eBay being a major marketplace entity. Trying to tie PayPal into other marketplaces would continue to face headwinds unless PayPal became its own company.

Since the split, PayPal has expanded significantly as expected, somewhat exposing again how much eBay relied on the payment processing income for its revenues previously.

Certainly, eBay was the largest piece of revenue for PayPal when the two companies split, which was the reason the initial operating agreement kept PayPal the primary payment processor on eBay.

But as eBay decided to manage its own payments, as allowed under the operating agreement, PayPal aggressively pursued more opportunities to head off the expected declining revenue from eBay.

Over the last two years, eBay has become an increasingly smaller piece of the PayPal revenue stream, but one that was still discussed at every earnings call.

“Dan [Schulman] and I both appreciate that the investor community probably is getting tired of us talking about eBay and eBay results, but arguably not more so than we are, but this is the other side of that coin. It’s as simple as that. I mean this would not be allowed had we not taken the steps that we had, and so we’re quite excited about this and what it bodes for the future.”

John Rainey, CFO, PayPal

It sounds like that is about to change.

Connect with us: Head over to our Facebook Group for Small Business Sellers and interact with other small business owners.

Follow us on Facebook, Twitter, or LinkedIn to stay up to date with relevant news and business insights for your online business.