Starting in the first quarter of 2022, Amazon shoppers will be able to use Venmo to pay for their purchases from small and larger retail brands. This announcement was made just a few days ago by Venmo’s parent company, PayPal.
According to Amazon, this step will add flexibility and will increase the number of options available to make payments. In addition, since the ecommerce giant believes in innovation and improvements, the inclusion of Venmo will make the checkout process quite convenient.
What is Venmo?
As stated above, Venmo is a service of PayPal that helps you make purchases without utilizing your credit card. It is more like a social app that can help you send funds to family and friends without checks or cash.
If you haven’t used Venmo before, let us explain to you how it works. Firstly, you create an online Venmo account, and then you can link to a funding source which could be your bank account or credit card. You can also use your existing Venmo balance to make any payment.
To create an account, you need to download the app first. Venmo is available for both Android and IOS users. Use your preferred signup method and then go through a few verifications to get hold of this app.
Venmo is a consumer-friendly platform, and that is why many people use it. In addition, it is a no-fee way to make quick transactions and comes with colorful images and interactive features to make payment friendly and fun.
Moreover, Venmo is quite safe to use. It features bank-level encryption that helps keep all your personal information and data safe. If you want to increase the security level of your account, you can also enable multi-factor authentications and include a PIN code to limit account accessibility.
Currently, there are 52 million Venmo users in the USA, and a majority of them are under the age of 34. This means that Venmo is quite popular among young people who bring new consumer trends and look for opportunities to make their shopping easy and quick.
Venmo and Amazon
According to stats, almost 47% of Venmo users are interested in using the app to make payments for purchases made from small or big retail businesses. In addition, 65% of these users are more than interested in increasing the frequency of their online purchases.
Considering this data, it is safe to say that the deal between Amazon and Venmo will result in positive changes for both companies. Thus, it is a win-win situation for both. But how?
How The Deal Benefits Amazon
Here are some ways in which Amazon can benefit from this exciting deal:
- The addition of Venmo is a win for Amazon since Amazon shoppers currently make payments through their debit or credit cards for the most part. This integration grants more opportunities and solutions for payments to take place on the platform. Anyone with an Amazon and Venmo account can make purchases.
- Secondly, this opportunity may create a crypto bridge for the ecommerce giant. According to PayPal’s announcement in March, many people will soon be able to use cryptocurrency as a medium for payment. In addition, Venmo is currently expanding and introducing exciting features to help users buy cryptocurrency using the cash-back facility from Venmo.
However, this isn’t completely possible as of yet. For example, Amazon is quite adamant about hiring a blockchain head but is still hesitant to make crypto as a currency for purchases.
- This partnership will prove quite beneficial for the younger generation. As many people today find it wrong to share their details on ecommerce platforms, Venmo will allow them to buy their favorite products available on Amazon without revealing their banking information or other sensitive information.
- There is no doubt in the fact that Amazon can easily use Venmo as a bridge to reach out to people who are loyal Venmo users. This increases the customer base for this ecommerce giant and helps build and support its other services, such as Fulfillment By Amazon (FBA).
The latter is a shipping and storage service that helps stores at Amazon in selling their products. With Venmo, annual Amazon purchases may increase, which means FBA may also witness a rise in its revenue.
The Benefits of the Deal to Venmo
So, what about Venmo? Will this relationship help increase popularity as well?
- Venmo is a much smaller platform than Amazon, so to be a part of the latter’s checkout process is a wonderful opportunity for growth. With this integration, more and more people will be interested in using this easy-to-handle app to purchase Amazon.
- The “Pay with Venmo” option during the checkout process will be a driving factor for the company’s revenue and growth.
- Besides, when linked with Amazon, Venmo will witness a healthy change in its reputation and increase brand awareness. When an app is associated with the most giant and popular ecommerce store, people automatically trust its process and services.
- This integration will help PayPal fund Venmo’s services and make it a smoother and more reliable platform for payment. Users are always looking for platforms that offer them unhindered services, and this step will allow Venmo to acquire new customers quite easily.
What’s more, this partnership will also help build new vacancies and job opportunities for people. So, all in all, such deals benefit a larger community than just the parties involved.
There are no other things to share at this point regarding this deal, but both companies are excited to allow Venmo users to utilize their accounts and buy products from Amazon.
Final Words
Amazon’s integration with Venmo is a great opportunity for both parties to grow and witness increased revenue. Moreover, it is also a wonderful chance for Venmo users to avail Amazon’s services and products in the USA.
That said, there are no further developments on this deal, and we will have to wait until 2022 to see the benefit that this partnership brings to everyone. But, for now, it appears to be a win-win situation, and there is a lot to look forward to from both the consumer and corporate perspectives.
