PayPal Holdings, Inc PYPL stock is trading lower Thursday after Amazon.Com Inc AMZN informed its users that it will no longer accept Venmo as a payment option starting January 10.
Amazon notified its customers of this change, clarifying that users can continue using Venmo debit and credit cards, CNBC reports.
Venmo, a PayPal subsidiary, also confirmed on its website that it will no longer be an available payment option for new additions but will remain in their Amazon wallet for existing users until the mentioned date.
This decision led to a decline in PayPal's shares in early Thursday trading, indicating a significant change from Amazon's earlier decision in October to introduce Venmo as a payment option.
Venmo is famous for its instant money transfer service between users.
An Amazon spokesperson confirmed the change, assuring that customers would have access to nearly a dozen other payment methods. Amazon did not disclose why it decided to remove Venmo as a payment method.
In October 2022, Amazon disclosed adding Venmo as a payment option on its e-commerce platform.
PayPal stock has lost 22% year-to-date.
Also Read: Despite Apple Pay's Impact, PayPal's Growth Prospects Remain Strong: Analyst
Price Action: PYPL shares traded lower by 1.77% at $58.48 on the last check Thursday.
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