What is Amazon Payments? How to pay with Amazon Payments? Amazon Pay is an online payments processing service owned by Amazon. Launched in 2007, Amazon Pay uses the consumer base of Amazon.com and focuses on giving users the option to pay with their Amazon accounts on external merchant websites. As of March 2021, the service became available in Austria, Belgium, Cyprus, Denmark, France, Germany, Hungary, India, Republic of Ireland, Italy, Japan, Luxembourg, Malaysia, Netherlands, Portugal, Spain, Sweden, Switzerland, United Kingdom, and the United States.
Amazon Pay announced a partnership with Worldpay in 2019, allowing Worldpay clients to enable Amazon Pay as a part of the same integration.
What is Amazon Payments?
Amazon Payments offers an e-commerce solution that works off of your customers’ Amazon.com accounts. Simple tools help you customize your payments, shipping, sales tax, returns and chargebacks. Amazon Payments also offers a simple and seamless way to integrate your company’s special sales and promotional coupons.
Your customers can pay without sharing their financial information, plus they’re protected by the Amazon A-to-z Guarantee. Virtually all you need for the initial setup is your business name, address and phone number, and a bank account.
How does Amazon Pay work – the basics?
Amazon Pay essentially works the same way as the mobile payment systems and ewallets. They store payment information rather than acting as a payment processor. In other words, if a customer chooses Amazon Pay, Amazon will pass the details of the transaction to a payment processor. It will not process the payment itself.
At present, Amazon Pay only supports debit, credit and charge cards. It does not support bank payments. Again, since Amazon Pay is so new, it’s unclear whether this will change in future.
How does Amazon Pay work – for customers?
Customers simply choose Amazon Pay at the checkout in the same way as they’d choose any other payment method. The key difference is that they can often make their payment in one step. This is more convenient than having to enter their payment details manually.
For higher-value purchases, their card provider may require payers to undertake an extra authentication check. These checks are, however, designed to be as straightforward as possible (for legitimate payers).
Is Amazon Payments safe?
When using a online payment platform, Doubts can assail you, especially in the case of important payments. Each of these platforms have security systems that make them more or less secure. But, without a doubt, the strong point in the case of Amazon Payments is that it protects user data. Why? Well, because you can buy in online stores that are not related to Amazon without having to give your personal data or need to register when buying.
In other words, Amazon will protect your identity and that online business (eCommerce) will only know about you the account that is provided for payment. But this will not be a bank account or a credit card. The email will act, as it already happens in PayPal, only that, in this case, we are talking about the email with which we registered with Amazon.
Thus, Amazon becomes the intermediary when buying online ensuring that the transaction is carried out efficiently and, otherwise, claiming.
How to pay with Amazon Payments
If it is still not clear to you, you should know that the payment method in Amazon Payments is always made through Amazon (or from Amazon Prime). To do this, you will have to register and have a means of payment. As you know, the only ones accepted in this case are a debit card, credit card or a prepaid card, accepting the most common ones, such as MasterCard, Maestro, American Express, Visa Electron, Visa …
Once you have that payment method, you can use it in eCommerce where they have enabled payment by Amazon Payments or Amazon Pay, either through the computer, mobile or even through Alexa using voice commands.
The Downsides of Amazon Payments
Now that you know Amazon is just as affordable as its competitors, your next question is whether there are any potential negatives. Depending on your specific customer base, weigh the following factors:
- Need for an Amazon account – As we noted, the majority of Americans subscribe to Amazon Prime. But there are also some individuals who prefer not to patronize Amazon and therefore don’t have an account. While this payment experience is offered on many websites, individuals don’t have to be Amazon customers, but they do need an Amazon account. If your target audience loves shopping small, they might not have Amazon accounts and will need a different payment option.
- Amazon can shut down your account – Certain products are prohibited from payment via Amazon Pay. These include alcohol, dietary supplements, smoking products, and some services. Carefully check the company’s Acceptable Use Policy and, if your product is “unacceptable,” consider a different payment option. Likewise, be sure to field customer service complaints rather than relying on the A-to-Z guarantee.
Because there’s no monthly service fee, it’s easy enough to enable Amazon Pay along with another payment option.
Other Factors That Affect Conversion
If you already use payment processing via PayPal or Stripe, it’s unlikely that adding Amazon Pay to your website will dramatically enhance your conversion rate. But ideally, more options lead to more sales and more room to play with your marketing budget.
After all, the right checkout experience is just one part of a successful eCommerce platform. Besides your payment options, consider the following aspects of your campaign:
- Sharp design – From social media campaigns to influencer partnerships, enticing images and branding are key to getting clicks. If you want more web traffic, start with your visual presence.
- Convincing copy – If customers are arriving at landing pages without placing items in their carts, there could be an issue in the product description or CTAs. Try adding another CTA higher up on the page.
- Optimized checkout experience – The moment when a customer puts an item in their cart is the most important part of the sales journey. Right now, they’re ready to buy, so it’s fairly easy to persuade them to add “similar items” or things “customers also liked.”
- Abandoned cart emails – If customers leave products in their carts, that doesn’t mean they’re gone for good. Make sure your email drip campaigns effectively reach out to customers who had second thoughts before hitting “order.”
Setting clear benchmarks for click-throughs and conversions can help you evaluate the ongoing success of your campaigns.
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