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Amazon announced Tuesday it’s adding Venmo as a payment option at checkout. Shares of PayPal, which owns Venmo, surged more than 5% in afternoon trading.
The feature will begin rolling out in the Amazon app and on amazon.com starting Tuesday, before launching for U.S. users by Black Friday on Nov. 25, Amazon said.
Venmo is a popular payment service that allows users to send money to each other. It has increasingly expanded beyond its peer-to-peer functionality, with more online retailers adding Venmo as a form of payment, such as Shopify and Lululemon.
Users add their Venmo account as a form of payment on their Amazon account, then select Venmo as their payment option during checkout.
The partnership will give Amazon shoppers more options to pay for their order. The company currently accepts credit and debit cards, store cards, HSA and FSA accounts, as well as EBT cards.
Amazon also announced a partnership with buy now, pay later service Affirm last year that lets users split their purchases into installments.
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