PayPal abandons eBay and switches to Amazon

Recently, PayPal announced that it will cooperate with Amazon: starting next year , Amazon will add Venmo payment options for US users.

It is understood that Venmo is a mobile payment platform owned by PayPal that provides users with social payment services for transferring money between friends and spending on e-commerce platforms . Starting sometime in 2022, Amazon shoppers will be able to link their accounts to the popular mobile payment service to make purchases through the Amazon website and mobile shopping apps.

Ben , Director of Global Payment Acceptance at Amazon   “We understand our customers want more choice and flexibility in the way they shop on Amazon,” Volk said in a statement. “ We’re excited to partner with Venmo to offer a new way to pay on Amazon by enabling our customers to pay using their Venmo accounts.”

The deal is undoubtedly a win-win for both parties. As PayPal points out, it currently has 80 million users in the U.S. alone . The company also cited a recent internal “behavioral study” that noted, “65% of Venmo users said they increased their online purchases during the pandemic , and 47% were interested in using Venmo to pay at checkout with merchants.”

It is understood that PayPal 's Venmo application began to support cryptocurrency services in April, and its payment volume increased by 36% to $60 billion. In a broad sense, PayPal's upcoming integration with Amazon may give Amazon a long-awaited advantage in the cryptocurrency field .

At the same time as announcing the partnership with Amazon, PayPal also released its third-quarter results, with revenue increasing 13% year-on-year to $6.18 billion, but lower than the expected $6.23 billion .

Meanwhile, PayPal's business with its traditional partner eBay is also declining rapidly. Six years after the two companies split, eBay is moving sellers from PayPal to its own payment system. PayPal said that transactions on the eBay marketplace fell 45% this quarter and now account for less than 4% of revenue.

This cooperation also indicates that PayPal will shift its business focus from eBay to Amazon .

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