EBay to Add Venmo as Payment Option in US

Online marketplace eBay will add Venmo as a payment option in the coming week, saying it aims to expand payment method choice and cater to the preferences of Gen Z and millennial shoppers.

This option will be available to U.S. buyers on eBay.com and the eBay app, the company said in a Thursday (June 13) press release.

“By integrating Venmo, a platform already embraced by more than 90 million highly engaged users, eBay taps into the modern and mobile-first consumer,” the company said in the release.

With Venmo, buyers can pay for purchases with their Venmo balance or with their Venmo-linked bank account, debit card or credit card, according to the release.

They can also link their Venmo account to their eBay account so that they won’t have to enter their payment details at checkout during subsequent transactions, the release said.

For sellers, eBay’s adoption of Venmo as a payment option will encourage more sales and fewer abandoned carts, as buyers who prefer this payment method will be able to use it, per the release. Sellers don’t have to do anything to offer Venmo as an option.

Venmo joins several other payment options already offered by eBay. Depending on the market, eBay also offers buyers the option to pay with major credit and debit cards, digital wallets and buy now, pay later (BNPL), according to the release.

“eBay’s payments strategy aims to deliver frictionless, relevant and safe commerce experiences for millions of buyers and sellers that transact on eBay every day across 190 markets,” the company said in the release. “Offering customers choice, flexibility and control in how they pay and get paid on the marketplace ensures they can focus on what matters most to them — pursuing their passions and growing their business.”

PYMNTS Intelligence has found that companies are adopting peer-to-peer (P2P) payment methods like Venmo to offer consumers more convenient and flexible payment options.

P2P payment systems cut out the need for credit cards, enable quick and easy transfer of funds, and typically integrate seamlessly with mobile devices, according to “P2P Payment Potential: Promoting Convenience While Protecting Consumers,” a PYMNTS Intelligence and The Clearing House collaboration.

The report also found that 51% of consumers in the U.S. use P2P payments, as do 52% of those in the United Kingdom.

Another company that recently added both Venmo and PayPal as payment options is healthcare payments firm TrustCommerce.

When announcing this move, TrustCommerce Chief Product Officer John Welch said in a press release: “In conversations with healthcare providers, we have heard loud and clear that they would like to maximize payment flexibility for their patients by offering new, user-friendly payment options.”