Amazon exiting ‘Pay with Venmo’ button deal, says Evercore ISI

Evercore ISI notes that Amazon (AMZN) informed Prime users last night that “Pay with Venmo” would no longer be available for checkout on their website as January 10, 2024, though users can still use Venmo debit and credit cards on Amazon. The firm expects this news is simply the result of a lack of traction as consumers failed to adopt using “Pay with Venmo” as their preferred checkout method. While in recent quarters PayPal (PYPL) has discussed a number of Venmo partnerships, both online with companies like Uber (UBER) and GrubHub (JTKWY) and at the physical POS with CVS (CVS), Abercrombie & Fitch (ANF) and others, last night’s news “creates concern around PayPal’s ability to monetize on these platforms,” the analyst tells investors. Evercore has an In Line rating and $65 price target on PayPal shares.