2.5 minutes

The online marketplace's decision comes a week after announcing it will no longer accept American Express as of mid-August.

After announcing in June that it would no longer accept American Express as a payment method, eBay Inc. is now adding Venmo to its checkout.

Buyers will be able to link their Venmo accounts to their eBay accounts. In doing so, they won’t have to enter their Venmo details for each purchase, eBay said. They will also have the choice to share the payment in their Venmo feeds.

“Known for its popularity among Gen Z and Millennials, buyers can enjoy the simplicity of paying for purchases with their Venmo balance, or their bank account, debit card, or credit card linked to their Venmo account,” eBay said in a press release.

EBay ranks No. 6 in Digital Commerce 360’s Global Online Marketplaces database. The database ranks the 100 largest such marketplaces by 2023 third-party GMV.

Of those 100 marketplaces, three (excluding eBay) already accept Venmo as a payment method — all of them based in the United States. Before eBay, the largest online marketplace to accept Venmo was Poshmark (No. 33).

advertisement

American Express out, Venmo in at eBay

“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 online marketplace said in the press release. It added, “Given that over 60% of eBay volume comes from mobile devices, Venmo’s mobile platform is ideal for digitally savvy shoppers looking for a simple and fast checkout process.”

It said 28% of Venmo’s users are Gen Z and Millennials within the 18 to 29 age bracket. That demographic, it said, is renowned for its tech-savviness.

Citing “unacceptably high fees American Express charges for processing credit card transactions,” eBay explained in a June 5 press release that it would discontinue its acceptance of the credit card beginning Aug. 17.

advertisement

“At a time when payment processing costs should be declining because of technological advancements, investments in fraud capabilities and customer protections by merchants like eBay, credit card transaction fees continue to rise unabated because of a lack of meaningful competition,” eBay noted.

Do you rank in our databases? 

Submit your data and we’ll see where you fit in our next ranking update.

Sign up

Stay on top of the latest developments in the ecommerce industry. Sign up for a complimentary subscription to Digital Commerce 360 Retail NewsFollow us on LinkedInTwitterFacebook and YouTube. Be the first to know when Digital Commerce 360 publishes news content.

Favorite

advertisement