Amazon Payments - The new one-in-all online banking solution

In a world without cash and with free checking accounts and credit cards on every corner, paying online is almost impossible. It seems that the only factor that could prevent us from spending money is the salad of numbers in our IBANs that only one in two can remember. If we were to sit at the same browser with autofill every time we shop, this might not be a problem. But what if we wanted to buy Mom's birthday present quickly during the break - without leaving the office? Then we have to rummage for our forgotten IBAN for a long time and never mistype the eighth digit. Or we use Amazon Payments, also known as Amazon Pay, if the online store offers this payment option. Since 2018, you can even pay a renowned newspaper of the city of Hamburg not only on account, by credit card and Paypal, but also comfortably use the Amazon Payments Service if you buy print magazines or merchandise.

How does Amazon Payments work and how can I pay with it?

Amazon Payments is as easy to use as any other payment service. By depositing your own payment details with Amazon in your customer account and specifying whether you want to pay by credit card or direct debit, a so-called Amazon Pay account will automatically be set up for you. However, this will only be activated when you make your first purchase from an online retailer that is not Amazon. Your account will be activated and you only have to select a payment method and the delivery address to complete your purchase.

Amazon will then take care of the payment process and you can sit back and relax. You can look at Amazon to see which online merchants offer this payment method.

What are the advantages and disadvantages of Amazon Payments?

Besides the fact that using Amazon Pay means you don't have to create annoying customer accounts the first time you order from the online store of your choice, one advantage of Amazon Payments is that you won't have to enter your bank details if you order from your mobile phone or use a different browser than usual. This minimizes the risk of incorrect entries and you have full transparency about where you bought what, because in your Amazon account you can see the transactions clearly.

Another factor is security: under no circumstances will your data be passed on to third parties, and Amazon offers maximum protection for your personal data. This level of security and service has been proven to be provided by Amazon, making it an ideal way to wipe away the hassle of typing in addresses and bank details all at once.

Does Amazon-Pay offer buyer protection?

An additional benefit is that when you purchase from third parties through Amazon Payments, you automatically benefit from the Amazon Buyer Protection, the A-to-Z Guarantee, that is offered with purchases made with this payment service. This warranty applies if the purchased products are not delivered, do not match the description, or are defective. Further information can be found in the General Terms and Conditions of the A-to-Z Guarantee. This creates a high level of trust, not only in the payment service, but also as a customer. You can be sure that your purchase from a third party Amazon provider is protected up to €2,500.

Are there disadvantages when using Amazon-Pay?

The disadvantages of Amazon Payments, on the other hand, are rather small. Of course, a major disadvantage is that the majority of online shops do not yet offer this payment method, but in view of Amazon's outstanding success in recent years, it is only a matter of time before it will be more popular. Usually the use of Amazon Payments is free for buyers. It is only when your credit card charges for foreign orders that you may be charged a percentage of the total cost. However, these conditions are primarily defined by your bank and it is up to you to clarify this.

What features does Amazon Pay offer merchants?

The features and benefits that come with Amazon's service are of particular importance to merchants. More time for shopping, less time for paying, that's how Amazon itself explains its service for merchants. Not only do merchants benefit from the trust that customers have in Amazon per se and therefore prefer to use this payment method, Amazon also offers some functions that handle the payment process quickly and securely on the merchant's side. Via an API, the most important data, such as the customer's address, is conveniently transmitted from Amazon without disrupting the customer's registration process.

Merchants also benefit from the A-to-Z Guarantee and Amazon's payment experience with the customer in question, significantly reducing bad debt losses and fraud.

Individual fees are charged for the transactions, but Amazon Pay of course also offers volume discounts, as larger online merchants already use this payment service. One or the other agency will help with the setup. 

Conclusion on Amazon Pay

Amazon has thus not only brought a service into e-commerce that adds another dimension to the omnipotence of the online giant, but has also found a way to cleverly do marketing for itself and to bind its users and other online shops even more closely to itself.