According to statistics, there are less than 10 percent of Amazon’s 304 million end users are using Amazon Payments in the year 2014 and 2015. Looking at a difference perspective, this is telling us that this can be a potential opportunity for ecommerce merchants that uses Amazon Payments at checkout if number grows around 20 to 30. Those merchant sites that are using or offering “pay with Amazon” can lower the bounce rate among Amazon customers.
PayPal has reportedly around 184 million active customers at their disposal— these includes people that have used their services to receive or send a payment in the past 12 months — for the first quarter of 2016. Amazon is one of those company which has the potential to overshadow PayPal “if more” of its customers use Payments.
The global branding of Amazon makes it attractive to many consumers and merchants from all over the world. Even Reader’s Digest knows about that since it recognized Amazon as the “Most Trusted Online Shopping Site” for the year 2015.
Interbrand, which is a popular global advertising agency, has included Amazon in their list of the world’s top 100 brands. Additionally, they have published Amazon with an estimated brand value at $37 billion in 2015, ranking tenth in the 100.
One way of attracting merchants to Amazon Payments is by offering incentives. Their terms states and is subject to a few conditions — Amazon Payments Growth Guarantee states: “If after 30 days within launching Login and Pay using Amazon you do not see any increase in sales, they’ll refund your fees on up to $100,000 in transactions,”
“The name itself Amazon is their biggest strength among competition. The fact that millions of customers trust the name, conversion is always almost guaranteed to go up — that is the way it is,” explains Eddie Lichstein, co-founder of Autoplicity.com, a retailer of automotive parts and accessories.
“Consumer trust to the company is also one of the reason that lead to higher ticket price sales” commented Scott Lucas, manager of ecommerce at First Class Watches, U.K. Lucas said that Amazon payments is around 15 percent of the company’s orders payments used in the past 30 days.
Amazon is one of the best in the business, no doubt about it. If the projected growth will be achieve in the coming years, then it will be a treat to Paypal and other big players in online payment schemes. But only the future hold such answer. If you are a merchant or an ordinary consumer, it is good to know that you have the option to use Amazon Payments for your sales or purchase.
If you havent heard about Amazong Payments you can also stick to the most common use online payment processor which is paypaland you can find more information with it on this site