Following the announcement that Amazon will allow its customers to utilize the payments startup Venmo to make purchases,PayPal stock (NASDAQ:PYPL) price saw a rise in value.
On Tuesday, the function will be available to a select group of Amazon (NASDAQ:AMZN) customers; by Black Friday, it will be accessible to all consumers in the United States. The statement made on Tuesday comes almost exactly one year after Amazon stated that it wanted to offer Venmo as an option.
“There’s no better time than the busy holiday season to offer customers payment options that are convenient, easy to use, and secure,” Max Bardon, vice president of Amazon Worldwide Payments, said in a statement. “We want to offer customers payment options that are convenient, easy to use, and secure.”
During Tuesday morning’s early trade, Paypal stock/shares (NASDAQ:PYPL) rose 5.7%
According to Doug Bland, head of PayPal’s consumer business, “the ability to pay with Venmo on Amazon continues our ongoing commitment to offer the community more ways to spend, send, receive, and manage their money with Venmo.” Venmo allows users to send and receive money, make purchases, and manage their finances.
The benefits of the relationship appear to be enormous for PayPal (NASDAQ:PYPL), given that Venmo has 90 million users and Amazon is reported to account for 30% of all e-commerce conducted in the United States. Even if only a small percentage of those consumers use Venmo to pay for a portion of their Amazon purchases, the total number of those transactions may be rather substantial.
The firm has been forced to scale down some of its more ambitious expansion goals due to adverse market and economic conditions, which is why PayPal’s share price has dropped by more than fifty percent this year. When it announced its results for the second quarter in August, the payments firm appeared to be more focused on its core business, which helped it win back investors. Prior to that, the company’s shares had fallen by about 70 percent from their all-time high of $308. The activist investor Elliott Management holds a position in PayPal, which has been a driver for both the stock and reforms inside the firm. Elliott Management is also a shareholder in the company.
PayPal (NASDAQ:PYPL) has been making a lot of noise about its capabilities since since they announced their intended partnership with Amazon a year ago.
“Think about the number of merchants that we would have to sign up here in the U.S. to get that same scale for Pay with Venmo, it would be multiple, multiple millions,” Dan Schulman, the chief executive officer of PayPal (NASDAQ:PYPL), said at a conference hosted by Goldman Sachs last month. Schulman was speaking about Amazon’s approximate share of the e-commerce market in the United States. “We couldn’t be more thrilled about the potential that lies ahead.”
According to the trade that took place on Tuesday, Wall Street seems enthusiastic as well.
Featured Image- Megapixl @ Vladakingdom
Author Valerie Remorosa 
