Microsoft and PayPal have announced a new partnership that will allow Venmo users to shop and pay with their Venmo balance on the Microsoft Store and Xbox. This is a significant expansion of Venmo's reach, as it will allow millions of Microsoft customers to access a fast and convenient way to pay for their favorite apps, games, devices and subscriptions.
Venmo is a popular mobile payment service owned by PayPal that allows users to send and receive money with friends and family, as well as pay for goods and services at participating merchants. Venmo has more than 70 million active users in the US, who together spent more than $159 billion through the app in 2020.
The partnership with Microsoft will give Venmo users more options for using their Venmo balance, which is the amount of money they have available in their Venmo account. Previously, Venmo users could only use their balance to pay at select online merchants and stores that accepted PayPal, or transfer it to their bank account or debit card. Now they can also use it to purchase anything from the Microsoft Store and Xbox Store, including apps, games, movies, music, devices, accessories, and subscriptions.
To use Venmo on the Microsoft Store and Xbox, users will need to link their Venmo account to their Microsoft account. Once linked, they can select Venmo as their payment method at checkout and confirm payment with their Venmo app. Users will also be able to split the cost of their purchases with their Venmo friends or share their shopping activity on Venmo social networks.
The partnership is expected to benefit both companies as it will increase customer loyalty and engagement. Microsoft will be able to attract more customers who prefer to use Venmo as a payment method, especially younger and mobile-savvy consumers. PayPal will be able to increase its revenue thanks to Venmo, which has been growing rapidly but still operates at a loss. PayPal charges merchants a fee for each transaction made with Venmo, but does not charge users to use the service.
The partnership is also part of a broader trend of integrating payment services with digital platforms. For example, Apple Pay and Google Pay are integrated with iOS and Android devices respectively, allowing users to pay with their phones at various online and offline merchants. Similarly, Amazon Pay and Shopify Pay are integrated with e-commerce platforms, allowing users to pay with their existing accounts at thousands of online stores.
By partnering with Microsoft, PayPal and Venmo are expanding their presence in the digital ecosystem and offering more value and convenience to their users. The partnership is expected to launch in the first half of 2024.
Venmo, the popular app for sending and receiving money from your contacts, is now available as a payment option for Xbox users in the US. This means you can purchase games, movies, TV shows, and apps in the Xbox Store using your Venmo balance or your linked bank account or card. You can also use Venmo to pay for your Xbox Game Pass subscription and share the cost with your friends if you want.
But that is not all. PayPal, Venmo's parent company, also offers its Pay Later service for the Microsoft Store in several countries, including the US, UK, Australia, Germany, France, Spain, and Italy. With Pay Later, you can split your payments into smaller installments over time, with no interest or fees.
These new payment options are part of Microsoft's ongoing effort to provide the best possible customer experience, whether for entertainment or productivity. Ajith Thekadath, vice president of Global Payments at Microsoft, said in a statement: “PayPal's addition of new payment method options delivers on this commitment and offers even more flexibility for customers with tools that work for them and their goals.”
Venmo has been expanding its reach beyond peer-to-peer transactions in recent years. For example, Amazon added Venmo as a payment option last October, allowing customers to shop with their Venmo balance or split their purchases with their contacts.