Patrick Gauthier, Amazon.com, Inc. (NASDAQ:AMZN) Payment’s vice president said, Amazon do not envision to add PayPal Holdings Inc (NASDAQ:PYPL)‘s digital payments service in its portfolio. He said that Amazon customers were not demanding PayPal’s service.
Since eBay Inc (NASDAQ:EBAY) declared it was separating from PayPal there’s been speculation that PayPal would partner with Amazon, giving customers another channel of payment at the world’s largest online retailer. PayPal was unable to forge such a partnership while under eBay, a major Amazon’s competitor.
Gauthier said there were no clear cut benefits for Amazon from a partnership from PayPal and a deal would make the Amazon shopping experience more complex. PayPal, a leading digital payments provider is confronted with an increasing number of competitors featuring startups as well as fresh payment choices from Wal-Mart Stores, Inc. (NYSE:WMT), Alphabet Inc (NASDAQ:GOOGL), Samsung and Apple Inc. (NASDAQ:AAPL). Amazon is attempting to have an alternative arrangement to PayPal.
As per Gauthier, 23 million customers have been using Pay with Amazon service. Providing a service like PayPal’s, Pay with Amazon lets customers utilize their Amazon log-in on other retail websites to purchase stuff without requiring creating a separate account or again entering payment data.
Amazon’s customer base is still less compared with PayPal’s 173 million active accounts but it’s over double the size of Visa Inc (NYSE:V)’s service termed Visa Checkout that has around 10 million accounts.
Amazon customers are spread over 170 countries and utilize their Amazon accounts to make purchases on third-party sites. Amazon has over 294 million customers who all have a Pay with Amazon account as there’s no requirement for a separate account while paying on a merchant’s site that provides the choice.
Gauthier says that over 50% of Pay with Amazon customers who utilize the choice is Prime members. Dubbing Prime members “creme de la creme” on the internet for purchasing, Gauthier says that the shorthand for Amazon customers can be “people who shop online”,
Gauthier says that Pay with Amazon isn’t just about processing payments; it’s about facilitating the purchase that involves an Amazon customer. The advantage to Amazon is those Pay with Amazon users who shop on a third-party site also interact more with Amazon’s ecosystem of services.