Updated: Oct 24, 2020
Amazon Pay is an online payment method that uses the stored payment methods in a customer’s Amazon account to check out online without requiring additional information or data entry.
It can be used both on Amazon and across other third-party ecommerce sites. This is a convenient and secure payment option for shoppers.
How does Amazon Pay work?
Once you add the Amazon Pay button to your checkout, here’s what happens:
A customer clicks the Amazon Pay logo or button during checkout.
They are redirected to an Amazon-hosted page to sign in using their Amazon login credentials.
They return to your site to complete the checkout process.
They choose the credit or debit card stored in their Amazon account that they’d like to use to check out.
They receive a receipt from Amazon Pay after the payment has been completed.
Amazon Pay Quick Facts
In 2016, more than 33 million customers in 170 countries used Amazon Pay to make a purchase.
With Amazon Pay, the buying experience is familiar and trusted — with over 310 million active customers, your target customers are almost certainly already shopping on Amazon.
Active merchants grew 120 percent between 2015 and 2016 as Amazon Payments expanded support for new areas, including government payments, travel, digital goods, insurance, entertainment, nonprofits and charities.
A Forrester Research poll last year of retailers found that 58 percent were interested in Amazon Pay but had no plans to roll it out in the next 18 months. Another 38 percent said they were not interested in it at all. By contrast, 76 percent of retailers polled had either already added Apple Pay or were planning to do so.
Amazon Pay installations and usage grew rapidly in mid-2016 across top 10,000, top 100,000, and top 1,000,000 websites on the internet.
Benefits of Amazon Pay?
Amazon Pay can help you increase conversions and boost customer loyalty by offering a seamless, secure payment option on your checkout.
This payment method helps you boost conversions in three ways: by increasing customer trust, streamlining your checkout, and offering omnichannel payments.
Adding trusted branded payment methods like Amazon Pay and PayPal can help put cautious shoppers at ease.
They don’t have to enter any sensitive credit card data on your site, and Amazon does not share password or payment information with third-party ecommerce merchants.
Adding Amazon Pay as a payment method at checkout saves time for your customers by allowing them to use the address and payment information they already use with Amazon.
Rather than having to enter in their payment and shipping information, they can log into their Amazon account and complete checkout in just a few clicks. This contributes to a seamless checkout, which can help reduce cart abandonment and keep customers coming back.
After surveying nearly 3,000 global consumers, we discovered that Gen Z shoppers are 2X more likely to complete an online purchase using a mobile wallet like Apple Pay, Amazon Pay or Google Pay than the average global consumer.
What Could Go Wrong?
Too much of a good thing: from a user experience standpoint, presenting too many options to the shopper may result in choice paralysis.
The fees associated with alternative payment options may skim at your bottom line.
Information security remains a constant worry of online shoppers. In their eyes, each payment option could open up a door to a breach or hack.
Instead of manually typing in their credit card number and shipping/billing addresses, the checkout process uses the details from the shopper’s Amazon account.
How Can I Integrate Amazon Pay on My Website?
Setup your Amazon Pay account
Register Your Amazon Account
Once you’re registered, you’ll need to login to Seller Central on the Amazon website to complete your account setup.
2.Enable Amazon Pay on your website
Enable Amazon Pay in your site control panel.
After testing the button in sandbox or preview mode, you will be ready to go live and officially add the button to your site’s shopping cart experience.
Overall, a streamlined, secure, and omnichannel shopping experience has never been more important to online shoppers.
We can expect to see Amazon Pay offered on more and more online stores in 2020.
Offering this payment method at checkout can help you increase conversions, reduce cart abandonment, and boost customer loyalty.