While those who transfer money to friends after a night out have endless ways to do so, businesses tend to choose which payment systems to support.
Some don't want to pay the hefty fees American Express charges merchants to accept its cards, while most chain retail establishments don't accept digital-payment systems like Zelle, Venmo and Cash App.
With airlines, the choice is even more limited since flight attendants must move quickly through the aisle with the snacks-and-drinks cart. That's why since the 2020 pandemic most major carriers no longer accept cash for in-flight payments.
JetBlue launches 'seamless payment option' for online transactions
On Jan. 21, JetBlue Airways (JBLU) said it would start accepting the PayPal (PYPL) -owned Venmo from customers booking flights through the JetBlue website and mobile app.
Given that the industry standard is to accept only credit and debit cards issued by banks, this move makes JetBlue the only U.S. airline to accept the payment service, which launched in 2009.
"We're continually looking for ways to make it easier to book a JetBlue flight on our website and mobile app," Carol Clements, chief digital and technology officer at the New York carrier, said in a statement. "Adding Venmo offers a seamless payment option for customers who enjoy the ease and convenience of the Venmo platform."
Related: How Does Venmo Make Money and Is It Safe?
Venmo use has dipped in popularity in favor of Zelle, at least partly because a bank-to-bank transfer does not require going through a separate platform.
But the JetBlue-Venmo partnership comes as the airline looks for new revenue streams amid a series of inconsistent quarters. For third-quarter 2024 the airline reported a net loss of $60 million, or 17 cents a share.
Venmo a good marketing tool for JetBlue
Fliers who want to use Venmo for in-flight transactions first must set it up as a payment option through the JetBlue in-flight app.
Competitors such as American Airlines (AAL) and United (UAL) currently accept PayPal as a payment option for making purchases online but not during flights. Again, the need for an internet connection to make a transfer through the app creates the potential for glitches when flight attendants are rushing through the aisles. JetBlue also offers PayPal as a flight-purchase option.
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Customers can already use Venmo to make a purchase through the JetBlue website while the option should be added to the app in the coming months.
Payments can be split or managed among multiple people traveling together through Venmo's Groups option.
While Venmo is isn't yet in use by large numbers of passengers purchasing flights, adding it as another option is an easy way for JetBlue to market itself and tap into commissions from the partnership.
"The added ability to pay with Venmo for flights on JetBlue and manage travel costs during the trip through Groups helps solve the pain points of shared expenses from the time of booking to returning home," PayPal's John Anderson, senior vice president and general manager of consumer, said in a statement.
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