October 27, 2022
Amazon announced on Tuesday that it is adding peer-to-peer (P2P) payment service Venmo to the options it offers shoppers buying goods on its platform.
The company is currently rolling out the Venmo option with plans to make it available to all customers by Black Friday.
“We want to offer our customers convenient, easy-to-use and secure payment options — and there’s no better time to do that than the busy holiday season. Whether it’s pay cash, buy now and pay later, or pay now through Venmo, our goal is to meet the needs and preferences of every Amazon customer,” said Max Bardon, Vice President of Amazon Worldwide Payments, in a statement. “We’re excited to continue to offer customers even more options when it comes to how and when to pay for their order.”
Using Venmo to make purchases on Amazon is quite simple. Amazon customers add the option to their account and then select it for payment during checkout. Customers can also use Venmo as their default payment option once it’s been added.
Amazon is relatively late in the game in accepting P2P payments. Others, including Abercrombie & Fitch, Boxed, CVS, Forever 21, Hollister, Lululemon, Poshmark, and Urban Outfitters, already accept Venmo payments. The service, which is owned by PayPal, has nearly 90 million users.
Insider information reports that Venmo is the largest P2P payment app in the United States with a 52.2% market share. Transactions made using the app are expected to “surpass $2.271 trillion in 2026, more than double the value in 2022,” according to the research firm.
Square, Zelle, Apple and Google also compete for market share in the P2P market. A report according to projects from Acumen Research and Consulting, the global P2P market will grow at a compound annual rate of 19.7% to reach $9.125 billion by 2030.
DISCUSSION QUESTIONS: What will offering Venmo as a payment option do for Amazon? Where do you see the P2P market in the US heading and what will this mean for retailers and consumer direct brands?
“Amazon’s efforts will help legitimize more alternative payment methods, although I’m not sure anyone today is abandoning Amazon shopping carts because Payoneer is not a payment option.”