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| Amazon customers will pay with Venmo next year |
Usually, if you want to buy something via the Amazon platform, you will need a credit or debit card. Starting in 2022, the e-commerce giant will also accept PayPal's mobile payment service Venmo.
This is the latest deal from Amazon that aims to provide customers with another way to pay for products in the marketplace.
Earlier this year, Amazon partnered with Affirm to enable customers to pay for products on a monthly basis. Credit card is still required.
PayPal announced that the transaction is part of its third-quarter results. Venmo processed about $60 billion in total payments for the quarter, up 36%.
PayPal, which recently investigated its Pinterest acquisition, acquired Venmo in 2013 as part of the Braintree acquisition for $800 million.
Amazon does not allow customers to use PayPal for payments. It is the first third-party payment platform to be adopted by the e-commerce giant.
Venmo started enabling users to buy and sell cryptocurrency earlier this year. The service also offers its own credit card.
Amazon does not allow customers to use PayPal to pay
There are still some details about the partnership. However, if you have a Venmo account in the US, you can use it to make purchases on the Amazon website and mobile apps starting in 2022, according to PayPal.
Venmo balance or a linked bank account can also be used for payment. The company did not provide a more accurate timeline or details on how these transactions will work. The company said it was still working with Amazon on the details.
Amazon could offer it as a complete payment mechanism by offering the option to pay with Venmo, or it could try to be more in control by forcing you to integrate Venmo into its wallet.
Like PayPal, Venmo recently added support for popular cryptocurrencies. However, it is not clear whether you can use the cryptocurrency to purchase Amazon products.