Microsoft and PayPal team up to bring Venmo support to Xbox

Microsoft and Paypal partnership
(Image credit: Future)

What you need to know

  • Microsoft and PayPal have agreed to offer additional payment options in the Microsoft Store.
  • Venmo is now available as a payment option in the Microsoft Store on Xbox.
  • PayPal Pay Later has been integrated to the Microsoft Store in the U.S., U.K., Australia, Germany, France, Spain and Italy.

The Microsoft Store is getting a new payment method to make buying your new Surface device, movies, music and games even easier. PayPal and Microsoft have had a long-standing relationship with consumers able to make use of PayPal checkout to pay for purchases made in the Microsoft Store but today the two corporations have announced an extension to their partnership that brings Venmo payments and PayPal Pay Later support into the fold.

For over 16 years, PayPal checkout has been a trusted method for Microsoft Store customers to purchase products like Surface devices and Xbox consoles and accessories, as well as Microsoft 365's product suite. We are thrilled to expand our partnership with Microsoft to offer them access to our full suite of capabilities that will create a beautiful customer experience across the entire shopping journey.

Kurt Campisano, PayPal

The Microsoft store on Xbox has long had PayPal support as a payment option, but now customers will be able to pay with Venmo as well. They will even have the option to split the cost of their cart between payment options, such as Microsoft credit and Venmo. 

PayPal Pay Later support is also coming to the Microsoft store in the following regions:

  • United States
  • United Kingdom
  • Australia
  • Germany
  • France
  • Spain
  • Italy

The introduction of PayPal Pay Later will allow users to purchase products including Microsoft's Surface family of devices, Xbox consoles, and Microsoft 365 products with the help of a flexible payment solution. In their most recent earnings report, Microsoft revealed that its Surface products have continued to have sharp drops in revenue despite exceptionally high earnings elsewhere within the company. Offering additional ways to pay for these higher price tag devices may help bolster this struggling division.

Cole Martin

Cole is the resident Call of Duty know-it-all and indie game enthusiast for Windows Central. She's a lifelong artist with two decades of experience in digital painting, and she will happily talk your ear off about budget pen displays.