Will Amazon cash in on the P2P payment market?
Amazon on Tuesday said that it is adding the Venmo peer-to-peer (P2P) payment service to the options it provides shoppers purchasing goods from its platform.
The company is currently rolling the Venmo option out with plans to make it available to all customers by Black Friday.
“We want to offer customers payment options that are convenient, easy to use and secure — and there’s no better time for that than the busy holiday season. Whether it’s paying with cash, buying now and paying later or now paying via 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 they want to pay for their order.”
Using Venmo to make purchases on Amazon is pretty straightforward. 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 to 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 Intelligence reports that Venmo is the biggest P2P payment app in the U.S. with a 52.2 percent market share. Transactions made using the app are forecast “to surpass $2.271 trillion in 2026, more than double the value in 2022,” according to the research firm.
Also competing for market share in the P2P market are Square, Zelle, Apple and Google. A report from Acumen Research and Consulting projects that the global P2P market will grow by a 19.7 percent compounded annual rate to reach $9.125 billion by 2030.
- Amazon Offers Customers a New Way to Pay This Holiday Season With Venmo — a Convenient, Easy-to-Use, and Secure Payment Option – Amazon.com
- Venmo expanding: Here is a list of stores where you can use Venmo as a payment method – MassLive.com
- PayPal leans into Venmo for payments prowess – Insider Intelligence
- P2P Payment Market Size is predicted to Reach at USD 9,135 Billion by 2030, Registering a CAGR of 19.7%, Owing to Increasing Smartphone Penetration and Evolving Digitalization – Acumen Research and Consulting/Globe Newswire
DISCUSSION QUESTIONS: What will offering Venmo as a payment option do for Amazon? Where do you see the P2P market in the U.S heading and what will it mean for retailers and consumer direct brands?