On 12 July, Uber announced partnership with Paypal’s Venmo to provide its customers with ‘another easy and seamless payment experience.’ The ride hailing service hasn’t named the exact date but the new payment option is expected to be introduced ‘in the coming weeks’ for Uber and Uber Eats clients in the US.
Uber riders can select the ‘Pay with Venmo’ option right next to Apple Pay, its major competing payment service. Upon adding the Venmo option, users will be able to pay for their trips or food deliveries from the balance left in the Uber app, a linked bank account or credit/debit cards.
The new payment service simplifies the split of costs due among users. This, however, cannot be done directly in the Uber app. In such cases users will have to switch to the Venmo app.
For years, Venmo has been used mostly for free money transfers. Last year the company added a ‘Pay’ option, which is part of Paypal’s initiative to monetise Venmo.
Paypal purchased the Venmo social payment platform from Braintree in 2013. The financial technology giant has been in the news recently, having made its biggest acquisition on 17 May, when Paypal bought iZettle, a Swedish payments startup, for $2.2 billion.