Amazon launched a New Service today - Competition for PayPal

26 replies
I just came across some news articles, announcing that today, Amazon launched a new service called "Login and Pay with Amazon".

I have heard about "Amazon Payments" for a long time now, but it seems that they are finally stepping up their game.

Amazon Takes on PayPal With Its Own Checkout Service

Amazon’s ‘Login and Pay with Amazon’ Service Challenges PayPal For The Web’s Payment Business | TechCrunch

The retail giant announced Tuesday a new service called "Login and Pay with Amazon." The service, where enabled, will allow shoppers to check out at third-party retail websites by using the payment information they have stored on Amazon (think of it as Facebook Connect for shopping). It's designed to make checking out more streamlined and secure: Shoppers won't have to enter their payment information during checkout, and they won't have to store that information at an additional site.
Amazon's major advantage entering the market is size. The company claims to have 215 million active accounts, nearly 40% more than PayPal.

But Amazon has a serious disadvantage, too. Most retailers recognize Amazon as competition, and have no desire to promote their services or products.

Has anyone tried this out yet? What are your thoughts on "Login and Pay with Amazon"?

I for one, am willing to try this out soon, once I can find the time to integrate and test it out on some of my sites.

My main problem with PayPal thus far, is service limitations due to my country of residence. I need to wait longer than most people to get access to my funds.

It would be good to see someone finally give PayPal some decent competition.

I don't expect Amazon to shake up things for PayPal right away... but give them a year or so... I'm sure we'll start seeing "Pay with Amazon" appearing all over the net.

You can sign up for Amazon Payments here:
https://payments.amazon.com/

==================================================

[Update]:
It appears that Login and Pay with Amazon is currently only available to sellers in the U.S.

https://payments.amazon.com/business/api-integration
Getting Started

To get started for free, sign up for an Amazon Payments seller account. You will need your legal business name, contact information, a U.S. credit card, and a U.S. address. After you sign up, you'll be able to integrate our APIs into your website to develop a custom experience and start accepting payments.
I guess like many other similar businesses, they'll start off in the U.S. only at first, and then migrate their service globally over a period of time, as they get through various testing phases, legal agreements, paperwork, etc...
#amazon #competition #launched #paypal #service #today
  • Profile picture of the author KenJ
    Thanks for this information Andrew. I like the way that customers stay on your site with this payment option. I will be trying it out but would like to hear from anyone who is using it already.

    KenJ
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  • Profile picture of the author rondo
    It appears that it's only available in the United States.


    Andrew
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    • Profile picture of the author Andrew Davis
      Originally Posted by rondo View Post

      It appears that it's only available in the United States.
      Andrew
      Thanks for pointing that out rondo!
      I have edited my OP to mention this.

      That's unfortunate news... but I'm sure that Amazon knows what they are doing, and they have all intentions of taking this globally, as soon as they can do so successfully.

      I'll be looking forward to seeing this service available globally to sellers.
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      • Profile picture of the author IM Inc
        Good and healthy competition is always good. Watch out paypal
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  • Profile picture of the author tritrain
    Google did the same thing several years ago. I think Amazon has a better shot at it though, if they actually advertise it well.
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    • Profile picture of the author JSProjects
      Originally Posted by tritrain View Post

      Google did the same thing several years ago. I think Amazon has a better shot at it though, if they actually advertise it well.
      As much as I'm not a big fan of Google "taking over the world," I really wish they had a solid, legitimate competitor to PayPal. PayPal is just a nightmare sometimes.
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      • Profile picture of the author Rod Dinero
        Originally Posted by JSProjects View Post

        As much as I'm not a big fan of Google "taking over the world," I really wish they had a solid, legitimate competitor to PayPal. PayPal is just a nightmare sometimes.
        Same here, I just hope I live to see the day when Gaypal gets crushed by someone else
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  • Profile picture of the author competent123
    its about time suckpal gets some real competition.
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  • Profile picture of the author JohnMcCabe
    But Amazon has a serious disadvantage, too. Most retailers recognize Amazon as competition, and have no desire to promote their services or products.
    They're talking about other major retailers, like Walmart, Best Buy, etc.

    Where I think Amazon's new service will make its impact is with small online retailers - like most IMers, smaller ecomm sites, service businesses who take online payments, etc.

    In other words, the markets where people feel compelled to demonstrate their lack of wit by coming up with disparaging nicknames, like they're somehow going to hurt the company;s feelings by insulting them...
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    • Profile picture of the author Andrew Davis
      Originally Posted by JohnMcCabe View Post

      They're talking about other major retailers, like Walmart, Best Buy, etc.

      Where I think Amazon's new service will make its impact is with small online retailers - like most IMers, smaller ecomm sites, service businesses who take online payments, etc.
      Yup, I agree.

      The problem for Amazon here, is that the vast majority of online purchases (I suspect) are made through those major retailers.

      So Amazon is already losing half the battle (or more), if their competitors refuse to use their payment processing services.
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      • Profile picture of the author JohnMcCabe
        Originally Posted by Andrew Davis View Post

        Yup, I agree.

        The problem for Amazon here, is that the vast majority of online purchases (I suspect) are made through those major retailers.

        So Amazon is already losing half the battle (or more), if their competitors refuse to use their payment processing services.
        You might be right, but at least Paypal faces the same battle - most of the major retailers online use their own merchant accounts/shopping carts.
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        • Profile picture of the author Andrew Davis
          Originally Posted by JohnMcCabe View Post

          You might be right, but at least Paypal faces the same battle - most of the major retailers online use their own merchant accounts/shopping carts.
          Yeah I did think about that too, they do have other payment options as well, such as direct Credit Card payment.

          However, most of top online retailers are also affiliated with PayPal.
          PayPal is usually one of the top/preferred payment options.

          Walmart, eBay, Best Buy, Target, VistaPrint, etc... are all affiliated with PayPal
          https://shopping.paypal.com/stores


          I must admit though... I'm also a little "guilty" of using PayPal as my preferred payment method, when available.

          1) It's safer than entering your Credit Card details every time you buy something.

          2) If the buyer is not satisfied with a purchase, it's easier to get a refund if they purchased using PayPal. Merchants try to avoid getting into disputes through PayPal. (I don't really ask for refunds though, even if I don't like the product)

          3) At one time, PayPal "protected my funds" from being stuck in Authorization hold, from a cancelled order. (I don't really understand how/why)
          I was able to place the order again right away, using the same Pre-Authorized funds.

          Had I used my Debit Card information directly, the funds would have been taken out of my bank, and be held for 10 Business days before it became available again. (Happened to me more than once)


          I'll be happy to try using Amazon, as a buyer, when that option becomes available to me.
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  • Profile picture of the author Ryan David
    I had to check the date on this to make sure I wasn't responding to an old post, but this is old information. As I read through it, it sounded exactly like "Checkout with Amazon" and that's something I've had enabled on my site since May 2011.

    All they did was rebrand this as "Pay with Amazon" but it was completed almost a year ago. Just to refresh my memory, I looked in my email

    "Effective November 12, 2012, we’ll be introducing a new “Pay with Amazon” button that your customers will see in your checkout flow where you currently show the “Checkout with Amazon” button. We believe this new messaging will improve buyer experience and help increase conversion."

    I think it is fairly handy because customers don't need to take out their credit card, but not sure it'll be a game changer. Still pretty low usage overall.
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    • Profile picture of the author Andrew Davis
      Originally Posted by Ryan David View Post

      I had to check the date on this to make sure I wasn't responding to an old post, but this is old information. As I read through it, it sounded exactly like "Checkout with Amazon" and that's something I've had enabled on my site since May 2011.

      All they did was rebrand this as "Pay with Amazon" but it was completed almost a year ago.
      I believe that "Checkout by Amazon" and "Login and Pay with Amazon" are similar, yet different services.

      https://payments.amazon.com/business...ctsandservices

      Checkout by Amazon
      Easy Setup

      Activate a complete checkout flow on your site with a simple HTML button. Bundles Amazon Payments and order management features.

      Ideal If:
      You need a complete checkout flow to sell and ship goods on your website

      Not suitable if:
      You sell digital goods
      Login and Pay with Amazon
      Developer APIs

      Includes Login with Amazon and Amazon Payments so you can keep customers on your site and grow your business. Create the experience you want using flexible APIs.

      Ideal If:
      You want a payments and login API so you or your developer can customize your site's checkout

      Not suitable if:
      You don't have help from a web developer
      So what we had available before was NOT suitable for Digital Products, but this new service apparently is.

      In any case, I take this news as a next step forward in seeing someone actually give competition to PayPal.
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  • Profile picture of the author gpx
    Great move by amazon, if they advertise it correctly I think this can be huge. Makes me want to buy their stock again, lol! Going to give it a try on a couple of my sites, thanks for the heads up!
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  • Profile picture of the author vedremo
    Banned
    I can't wait until Amazon comes to Australia and we get FBA. Might be 2 or 3 years away, but still will be worth the wait.

    Nothing but good experiences with Amazon and they don't treat sellers with the disdain eBay & Paypal do.
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  • Profile picture of the author focusedlife
    This is news for me, for sure. Thanks.

    I wonder exactly how to leverage this new found info.
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  • Profile picture of the author Stefan Shields
    Originally Posted by Andrew Davis View Post

    I just came across some news articles, announcing that today, Amazon launched a new service called "Login and Pay with Amazon".

    I have heard about "Amazon Payments" for a long time now, but it seems that they are finally stepping up their game.

    Amazon Takes on PayPal With Its Own Checkout Service

    Amazon's 'Login and Pay with Amazon' Service Challenges PayPal For The Web's Payment Business | TechCrunch





    Login and Pay with Amazon - YouTube

    Has anyone tried this out yet? What are your thoughts on "Login and Pay with Amazon"?

    I for one, am willing to try this out soon, once I can find the time to integrate and test it out on some of my sites.

    My main problem with PayPal thus far, is service limitations due to my country of residence. I need to wait longer than most people to get access to my funds.

    It would be good to see someone finally give PayPal some decent competition.

    I don't expect Amazon to shake up things for PayPal right away... but give them a year or so... I'm sure we'll start seeing "Pay with Amazon" appearing all over the net.

    You can sign up for Amazon Payments here:
    https://payments.amazon.com/

    ==================================================

    [Update]:
    It appears that Login and Pay with Amazon is currently only available to sellers in the U.S.

    https://payments.amazon.com/business/api-integration


    I guess like many other similar businesses, they'll start off in the U.S. only at first, and then migrate their service globally over a period of time, as they get through various testing phases, legal agreements, paperwork, etc...
    That's a very catchy name they have there.
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  • Profile picture of the author timpears
    Yes, what happened to the Google payment thing, haven't seen that in a while.

    I hope that Amazon is successful with this, maybe PayPal will wise up and start treating sellers a bit better.
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    Tim Pears

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    • Profile picture of the author JSProjects
      Originally Posted by timpears View Post

      Yes, what happened to the Google payment thing, haven't seen that in a while.

      I hope that Amazon is successful with this, maybe PayPal will wise up and start treating sellers a bit better.
      ....HA! That'll be the day.
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  • Profile picture of the author JennySweets
    Amazon has been after their share of the market for a few years now- which is why you have not been able to pay for anything on Amazon with PayPal unless you bought an amazon gift card third party with paypal. It shocks me that they've taken this long to try to shove into a larger market share. I think a lot of folks think no one can come up against PayPal. If Amazon had made a more concerted effort a couple of years ago when I *THOUGHT* they would, they may have had a chance.

    Just because I don't think they will be nearly as successful as I and a lot of other people WISH they could be doesn't mean that PayPal is this untouchable behemoth. Many have tried to compete evenly with PayPal. Many have failed. The right underdog hasn't quite come along - and that is a vision of the future I will hold onto.

    (For those to whom this is News - some of us were talking about this 2 plus years ago and we have been waiting for Amazon and the rest of the world to catch up with our foresight into their motives and actions. Since it's taken this long for them to bring out a "pay with amazon" service.. don't hold your breath that it will take hold.)
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  • Profile picture of the author JRJWrites
    Not for me. I don't live in the US
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  • I'd probably use it to make purchases on Amazon, because I hate using my credit card. Honestly though I'd prefer it if they just, like, accepted Paypal. I realize that it's owned by a competitor of theirs, but damn, it's annoying that I can't use Paypal on their site.
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