Amazon has officially announced its future plans regarding adoption of its paymnts service, Amazon Payments, to more third-party websites, including merchants big and small, to team up with using the company’s existing system. With the launch of its Amazon Payments Global Partner Program, the e-commerce will help retailer platform providers and other developers integrate with Amazon Payments, so that their own merchandise can offer the option to “Pay with Amazon” at checkout.
Announced the launch of the Amazon Payments in a new way for e-commerce platform and split up in three tiers, with varying levels of account management, planning support, technical resources, marketing resources and training support. Partners include PrestaShop, Shopify, and Future Shop. Although Amazon Payments can be used by individual merchants who can choose to integrate the company’s tools, such as “Login and Pay with Amazon,” in order to offer an easy solution for online shoppers to authenticate with their Amazon account information on a third-party site, then pay for their purchases with the credit card info they’ve on file with Amazon.
This Amazon Payments could be a bad news for PayPal and other firms that already have similar systems, and the Partner program will debut first in Germany, Japan, the United Kingdom and of course the United States and immensively provide a complete set of tools for e-commerce sites that cater to merchants.
Actually, Amazon began to ramp up Amazon Payments back in 2013, as it was introduced first as a new one-click “Login and Pay” feature specifically designed for third-party online retailers. Basically, it only allowed online sellers outside of the Amazon ecosystem to install “Pay with Amazon” button through a set of widgets and APIs crafted by Amazon itself. Those retailers however gained a link to Amazon’s 285 million active account holders who could then use their Amazon login credentials to pay virtually instantly, with Amazon filling in all of the billing and shopping data.
That idea could increase conversion rates and sales by making the checkout process as short and simple as posible – something PayPal was been working on for quite a time now. With that said, PayPal is the most obvious competitor to Amazon Payments, and the parallel beween the two businesses grows even stronger with Amazon’s partner program. Nevertheless Amazon can quickly become a big rival force in the payments industry given its large existing user base, trusted brand and partnerships with Prestashop and Shopify.
Then comes to scene is the Square, beyond PayPal. A similar effort of payments ubiquity is taking place at Square, the company has recently announced an e-commerce API, which allow merchants operating a self-hosted website to process online payments through it. Square’s e-commerce push still a pretty minor threat to PayPal and Amazon now, but it’s a start.
The Amazon’s move is a clear signal to what it intends to ramp up its competition with other payment service providers, like PayPal, Visa, Apple Pay, and others, on a wider web. This expansion also comes at a time when Amazon Payments has seen a surge in growth and adoption.