PayPal shares slide after Amazon drops Venmo as payment option

The Venmo logo displayed on a smartphone.

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Amazon notified users late Wednesday it will soon stop accepting Venmo as a payment method.

The company said it will no longer let users pay using Venmo beginning Jan. 10, according to a notice sent out to Amazon customers. Amazon will still accept Venmo debit and credit cards, the notice states. Venmo announced the move in a separate notice posted to its website.

“Due to recent changes, Venmo can no longer be added as a payment method,” the company said. “Venmo will remain available to users who currently have it enabled in their Amazon wallet until 01/10/24.”

Shares of PayPal, which owns Venmo, slid more than 2% in afternoon trading Thursday.

The move is an abrupt reversal. Amazon announced last October it would add Venmo as a payment method at checkout, giving shoppers more options to pay for their purchases. Venmo is a popular payment service that lets users instantly send money to one another.

An Amazon spokesperson confirmed the change and said shoppers will still be able to use “nearly a dozen other payment methods.” The company didn’t elaborate on why it is removing Venmo as a payment method.

A Venmo spokesperson told CNBC in a statement that the company and Amazon agreed to disable the payment service as an option, adding: “We have a strong relationship with Amazon and look forward to continuing to build on it.”

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