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Venmo grew as a way to exchange funds between friends. Now, it’s set to become a payment option for goods purchased on Amazon.
The news: Amazon announced Tuesday that it will begin accepting payments from PayPal-owned Venmo, billing it as a way to add more choice in the checkout experience. Amazon is adding the payment method in time for the holidays. The rollout of the service is already underway for select customers, and will be in place by Black Friday, Amazon said.
How it works:
- During checkout, shoppers click “Select a payment method” and then tap “Add a Venmo account.”
- Then, the Venmo app opens, where users can allow Amazon to charge Venmo for future purchases.
- Next, an Amazon confirmation screen will be displayed
- Plus, users can choose to set Venmo as the default payment method for future Amazon purchases.
Screenshot of Amazon + Venmo, (Courtesy photo)
What Venmo brings: Venmo has a community of 90 million users. The app offers a way to settle up bills or purchases, so it can directly access bank funds. But money that is paid sits in a Venmo account. That means many users have funds stored in the app. Now, those funds can be used to pay for Amazon purchases. The idea behind Venmo has always been that it functions as a digital wallet. Being able to pay for goods feels like a next step in that evolution. It gives the payment app additional utility beyond peer-to-peer exchanges.
Ready to shop: Internal research from the company showed that Venmo users shop over two times more frequently than the average shopper, and are 19% more likely to make repeat purchases. It has led Venmo to more direct integrations with businesses through direct payments and business profiles. Amazon makes the app available for a marketplace.
Share it: Venmo is also a social form of payment, with a feed where people can share details of purchases or exchange emoji-laden messages. This opens up the potential for people to post about their Amazon purchases going forward.
For Amazon, it’s a new payment method that’s responsive to how people pay. Amazon already offers standard credit cards and gift cards. It added a Buy Now Pay Later option through a partnership with Affirm last year. Interestingly, it does not offer as many payment options as some ecommerce checkout pages that offer Apple Pay, Shop Pay, et. al. In fact, Shopify added Venmo as a checkout option in 2018 as it looked to offer merchants choice. Amazon's move is at least one step toward adding more ways to pay.Key quote: “We want to offer customers payment options that are convenient, easy to use, and secure—and there’s no better time for that than the busy holiday season. Whether it’s paying with cash, buying now and paying later, or now paying via Venmo, our goal is to meet the needs and preferences of every Amazon customer,” said Max Bardon, vice president of Amazon Worldwide Payments, in a statement. “We’re excited to continue to offer customers even more options when it comes to how and when they want to pay for their order.”
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On the Move has the latest from Amazon, Lovesac and more.
This week, leadership is changing at GameStop, Sorel and Beautycounter. Meanwhile, key executives are departing at Amazon, Wayfair and Lovesac.
Here’s a look at the latest shuffles:
GameStop CEO fired
GameStop announced the termination of Matthew Furlong as CEO on Wednesday. A brief statement did not provide a reason for the firing.
With the move, Chewy founder and activist investor Ryan Cohen was named executive chairman of the video game retailer. Cohen will be responsible for capital allocation and overseeing management.
It came as the company reported a 10% year-over-year decline in net sales for the first quarter. Meanwhile, the company’s net loss improved by 62%.
In an SEC filing, GameStop further added this “We believe the combination of these efforts to stabilize and optimize our core business and achieve sustained profitability while also focusing on capital allocation under Mr. Cohen’s leadership will further unlock long-term value creation for our stockholders.”
Cohen was revealed as GameStop's largest shareholder when he disclosed a 10% stake in the retailer in 2020. GameStop went on to become a leading name in the meme stock rise of 2021.
Sorel president steps down
Mark Nenow is stepping down as president of the Sorel brand in order to focus on his health.
After rising to the role in 2015, Nenow spearheaded a transformation of Columbia Sportswear-owned Sorel from a men’s workwear brand to a fashion-focused brand that led with a women’s offering of boots, sandals and sneakers.
“Mark led the brand to sales of $347 million in net sales in 2022,” said Columbia Sportswear CEO Tim Boyle, in a statement. “His leadership has been invaluable to this company, and we wish him the very best.”
Columbia will conduct a search for Nenow’s replacement. Craig Zanon, the company’s SVP of emerging brands, will lead Sorel in the interim.
Beautycounter appoints interim CEO
Beautycounter appointed board member Mindy Mackenzie as interim CEO, succeeding Marc Rey. According to the brand, Rey and the board “mutually decided to transition to a new phase of leadership for Beautycounter.”
McKenzie, a former executive at Carlyle, McKinsey and Jim Beam, will lead the company as it conducts a search for a permanent CEO. Additionally, former Natura & Co CEO Roberto Marques will join Beautycounter’s board as chair.
As part of the transition, Nicole Malozi is also joining the company as chief financial officer. She brings experience from Tatcha, Nike, and DFS Group Limited.
Amazon’s North America fulfillment chief departs
Melissa Nick, a VP of customer fulfillment for North America at Amazon, will leave the company, effective June 16, CNBC reported. Nick joined the company in 2014, and oversaw a region that included nearly 300 fulfillment centers. After doubling its supply chain footprint during the pandemic, Amazon recently reorganized its fulfillment operations to take a regional approach, as opposed to a national model that often resulted in items shipping across the country.
Wayfair’s chief commercial officer to retire
Jon Blotner (Courtesy photo)
Steve Oblak will retire from the role of chief commercial officer at home goods marketplace Wayfair. With the move, Jon Blotner will be promoted to chief commercial officer.
"Steve has served as a critical part of our leadership team and played a pivotal role in Wayfair's growth, helping us grow from a $250 million business when he joined to $12 billion in net revenue today,” said Wayfair CEO Niraj Shah, in a statement. “He oversaw countless milestones, from helping to launch the Wayfair brand as we brought together hundreds of sites into a single platform, to launching new categories, business lines, and geographies while overseeing our North American and European businesses, to leading our debut into physical retail.”
Blotner previously oversaw exclusive and specialty retail brands, as well as digital media at Wayfair. Before joining the company, he served as president of Gemvara.com prior to its 2016 acquisition by Berkshire Hathaway.
Lovesac announces CFO transition
Furniture retailer Lovesac said Donna Dellomo will retire as EVP and CFO, and move to an advisory role, effective June 30. Dellomo was with Lovesac for six years.
Keith Siegner was appointed as the next EVP and CFO. He brings experience as CFO of esports company Vindex, as well as executive roles at Yum! Brands, UBS Securities and Credit Suisse.
Additionally, Jack Krause will retire from the role of chief strategy officer, effective June 30. His responsibilities will be divided between CEO Shawn Nelson and president Mary Fox.
“Since joining Lovesac, Jack has played an instrumental role in transforming the Company into a true omni channel retailer by helping expand our physical touchpoints and digital platform as we continue to disrupt the industry,” said Nelson, in a statement.
NRF adds board members
The National Retail Federation announced the addition of five new board members. They include:
- Marguerite Adzick, founder and CEO, Addison Bay
- Harley Finkelstein, president, Shopify
- Ian Kahn, partner, PwC
- Sharon Leite, CEO, Ideal Image
- Carrie Tharp, VP, strategic industries, Google Cloud