Uber will let riders pay with a Venmo balance

  • Uber riders will be able to pay for a trip with the money sitting in their Venmo accounts.
  • PayPal previously introduced the Pay with Venmo option with food delivery services GrubHub and Seamless.
  • The feature could give Venmo a boost as it fights off digital payment threats from Square's Cash App and bank-backed Zelle.
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Uber riders will soon be able to pay for a trip with the money sitting in their Venmo accounts.

The leading ride-hailing company will introduce a "Pay with Venmo" option as part of an ongoing partnership with PayPal, which owns Venmo, PayPal said Thursday. The feature could give Venmo a boost as it fights off digital payment threats from Square's Cash App and bank-backed Zelle.

Cash App is on track to overtake Venmo in number of downloads in a matter of weeks, Nomura Instinet analyst Dan Dolev estimated earlier this week, but the ability to pay for a ride with industry leading Uber could sway users back to Venmo.

PayPal previously introduced the Pay with Venmo option with food delivery services GrubHub and Seamless and at checkout for countless online retailers. The feature will roll out to Uber and Uber Eats in the coming weeks, PayPal said.