Venmo no longer available on Amazon, causing concern for PayPal
- Amazon drops Venmo as a payment option
- PayPal stock is dropping
- Venmo can no longer be added as a payment method by Amazon users
- Existing Venmo users on Amazon can continue to use it until Jan. 10
- Amazon cites lack of traction as the reason for dropping Venmo
- PayPal has been discussing partnerships with other online retailers
- Analyst expects no material impact on PayPal’s earnings from the drop
- PayPal and Amazon initially rolled out their partnership for Venmo in October 2022
- PayPal stock was down 1.3% on Thursday
Amazon has announced that it will no longer offer Venmo as a payment option, leading to a decline in PayPal stock. Existing Venmo users on Amazon can continue to use it until January 10. The decision was made due to a lack of traction and adoption by consumers. PayPal has been exploring partnerships with other online retailers, but this news raises concerns about its ability to monetize on these platforms. Despite initial analysis suggesting no impact on PayPal’s earnings, the drop in Venmo usage on Amazon is expected to have a minimal effect. The partnership between PayPal and Amazon for Venmo was launched in October 2022. As a result of this announcement, PayPal stock dropped 1.3% on Thursday.
Factuality Level: 8
Factuality Justification: The article provides information about Amazon’s decision to stop offering Venmo as a payment option for Prime users. It includes statements from Amazon and Venmo, as well as analysis from an analyst. The information provided is specific and does not contain irrelevant or misleading information. There is no sensationalism or opinion masquerading as fact. The article does not include digressions or unnecessary background information. Overall, the article is factual and provides relevant information about the topic.
Noise Level: 3
Noise Justification: The article provides relevant information about Amazon’s decision to stop offering Venmo as a payment option. It includes statements from Amazon and Venmo, as well as analysis from an analyst. However, the article is quite short and lacks in-depth analysis or additional context.
Financial Relevance: Yes
Financial Markets Impacted: PayPal Holdings stock
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to financial topics as it discusses the impact of Amazon’s decision to stop offering Venmo as a payment option on PayPal’s stock. However, there is no mention of an extreme event or its impact.
Public Companies: Amazon.com (AMZN), PayPal Holdings (PYPL), Uber Technologies (UBER), Abercrombie & Fitch (ANF)
Private Companies: Venmo
Key People: David Togut (Evercore ISI analyst)
Reported publicly:
www.marketwatch.com 
