Amazon shoppers are excited to hear that PayPal has big news. 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 RetailDiveVenmo’s win in this regard is huge, as points out “increasingly competitive payments market.”
More Details Coming Soon
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 is positive that the partnership will grow “the addressable market for Pay with Venmo,” which will be one of Venmo’s “key revenue drivers”Moving forward
“I think about the journey that Venmo has been on—this obviously is a punctuation point for sure,” Schulman said.
Details about the agreement are still being negotiated. This means that a launch date for the agreement has not been set. However, we know that Venmo will begin accepting Amazon orders sometime in 2022.
PayPal Was Linked To eBay For Nearly Two Decades
The dawn of ecommerce in 2002 was a momentous one. PayPal was acquired by eBay for $1.5 Billion. The two sites worked together for the better part of a decade. PayPal payments are accepted by more than 70% of eBay auctions. PayPal was used to transact approximately 25% of closed auction listings.
2015 They were split into two distinct companies while honoring the existing agreement that kept PayPal as eBay’s primary payments processor. The two companies have not yet been merged. In 2018, they announced that they would not renew the agreement.It is 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 Now Available at Walmart and GoFundMe
PayPal also won a major win with Walmart and GoFundMe, in addition to their partnership deal with Amazon. Walmart now allows PayPal payments for its grocery and marketplace, while GoFundMe accepts donations through the PayPal app.
A new partnership between oil companies Valero 66 and Phillips 66 has seen PayPal add their QR codes to thousands more gas stations in the country.