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Microsoft integrates PayPal solutions into e-commerce offering

Microsoft XBox
The Microsoft Store on XBox accepts Venmo payments.

Microsoft is expanding the ways customers can shop the online Microsoft Store using PayPal payment technology.

For more than 16 years, Microsoft has enabled online customers to make payments on its digital marketplace using PayPal. Now, the tech giant is rolling out the PayPal Pay Later flexible payment solution in the U.S., U.K., Australia, Germany, France, Spain, and Italy. Leveraging PayPal Pay Later, eligible consumers will be able to pay for their purchases evenly over the course of weeks or months in fixed amounts

In addition, customers in the U.S. will soon have the option to pay with Venmo in the online Microsoft Store. Venmo is currently available in the Microsoft Store on Xbox in the U.S. When consumers pay with Venmo, they'll have the option to purchase subscriptions or split payments upon purchase.

According to a survey from retail operating system provider Brightpearl which asked consumers how they prefer to pay online. PayPal (58%) was the top choice, followed by credit (51%) and debit cards (47%). Other digital payment options cited by respondents included Amazon Pay (32%), Google Pay (29%), Apple Pay (26%), Shopify (19%), and Klarna (16%).

"At Microsoft, our commitment to creating the best experience for customers is at the center of everything we do, whether it's for entertainment or productivity," said Ajith Thekadath, VP of global payments, Microsoft. "The addition of new PayPal payment method options delivers on this commitment and offers even more flexibility for customers with tools that work for them and their goals." 

“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," said Kurt Campisano, senior VP of strategic accounts, PayPal. "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."

Amazon, other retailers accept Venmo

Venmo has slowly been growing as an accepted digital payment method, both online and in-store, by retailers. Amazon began offering Venmo as a digital payment solution to select online customers in October 2022, with a gradual rollout to all U.S. digital shoppers by Black Friday (Nov. 25, 2022).

This followed Venmo’s adoption by other online retail players including and In addition, a growing number of brick-and-mortar retailers have adopted Venmo. In August 2021, Giant Eagle and its GetGo division became the first U.S. supermarket and convenience chains to accept PayPal and Venmo payments at the physical store checkout.

Giant Eagle and GetGo began accepting PayPal and Venmo payment in-store on the heels of drugstore giant CVS Pharmacy, which in November 2020 became the first major national retailer to offer touch-free payment with PayPal and Venmo QR codes at its brick-and-mortar stores.

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