Amazon Payments (payments.amazon.com) is an electronic payment service that allows Amazon.com customers to pay for purchases on other websites by using their Amazon.com account. Amazon customers simply store their credit card and shipping information in their Amazon Payments account and then can checkout without having to enter payment information again on websites that accept Amazon Payments. The service is similar to PayPal and Google Checkout in that customers can either pay with the information stored in their accounts or enter payment information during the checkout process. The service is also sometimes called “Amazon Login and Pay.”
On August 13, 2014, Amazon launched a new service called Amazon Local Register. Similar to Square, the service utilizes a free app and a swiper that can be plugged into phones or tablets to enable merchants to accept payments. Amazon Local Register integrates with a merchant’s Amazon Payments account. For more information about Amazon Local Register, please see our Amazon Local Register review.
This Amazon Payments review is only going to focus on the Amazon Payments business account used by merchants for accepting payments from customers. Amazon offers two different services called “Checkout by Amazon” and “Amazon Simple Pay” that serve varying business needs and will be covered in detail below.
Checkout by Amazon
Checkout by Amazon is a service specifically tailored for e-commerce retailers that sell tangible goods. An advantage that the service offers over many of its competitors is that the default checkout process takes place without the customer leaving the retailer’s website. This is accomplished by using one of two different checkout options. The first and easiest to implement, called “Standard Checkout,” opens a co-branded pop-up window to Amazon Payments that allows the customer to complete the transaction. Although this is the simplest method, the drawback is that the pop-up may be blocked by a customer’s web browser and could result in lost sales.
The second, called “Login and Pay with Amazon,” keeps the entire checkout process on the retailer’s website but requires more advanced programming knowledge to implement. Merchants that have a high volume of sales, but lack the programming knowledge, are advised to seek out an experienced web developer to install this option.
Amazon Simple Pay
Amazon Simple Pay is for businesses that sell digital and virtual products (eBooks, stock photos, WordPress themes, etc.) or subscription services, or that need to facilitate payments between buyers and sellers of an online marketplace. Simple Pay can also be used to collect online donations.
Nearly all of Amazon Simple Pay’s applications are simple to implement by copying and pasting code snippets into the merchant’s website. Amazon also includes a back-end dashboard that allows merchants to manage sales and recurring transactions.