As an avid online shopper, you’ve probably accumulated a good chunk of change in your Paypal account. Whether you’re a casual eBay seller or regularly freelance online, your Paypal balance has become a convenient way to pay for things digitally.
So you head over to Amazon to treat yourself to a little retail therapy. But as you go to checkout, you realize – there‘s no option to pay with your Paypal funds! What gives?
I‘ve been there too, my friend. I know it‘s frustrating when you can‘t use your preferred payment method on a site. But don‘t worry – with a few clever workarounds, you can still use Paypal on Amazon in 2024.
In this detailed guide, I‘ll explain everything you need to know about Paypal and Amazon, including:
- Why Amazon doesn‘t take Paypal directly
- Sneaky ways to use Paypal on Amazon purchases
- Which Paypal alternatives work best for Amazon
- A breakdown of all Amazon payment options
Let‘s get started!
Can You Check Out With Paypal on Amazon?
This is the million dollar question – and unfortunately, the answer is no. Amazon does not offer Paypal as a payment option at checkout as of 2023.
You won‘t find a Paypal button, option to link your Paypal account, or any way to directly use your Paypal balance or credit on Amazon. Believe me, I‘ve scoured every inch of the checkout page looking for it!
This surprises many people, since Paypal is available on so many major online retailers:
- eBay – Paypal‘s parent company
- Etsy – About 60% of sales processed with Paypal
- Target – Can checkout with Paypal wallet
- Home Depot – Links with Paypal to give payment options
But Amazon stands alone in not accepting Paypal. According to Marketplace Pulse, only 7% of the top 1000 online stores don‘t accept Paypal – and Amazon is by far the largest.
Why hasn‘t Amazon integrated with Paypal when it seems like an obvious payment option to offer? There‘s no clear answer, but marketing experts speculate a few reasons why:
-
User experience – Amazon wants to own the payment process rather than directing users off-site.
-
Customer data – Paypal would intermediate the customer relationship and data collection.
-
Costs – Paypal charges merchants 2-4% in transaction fees Amazon may want to avoid.
-
Market position – Amazon doesn‘t feel pressure to offer niche payment methods with its market dominance.
Ultimately, Amazon caters to the majority of its customers by offering credit/debit cards, gift cards, and its own branded payment solutions. But for loyal Paypal users, not being able to use your balance can be a major headache.
Luckily, with some creative workarounds, you can still use Paypal on Amazon!
How To Use Paypal on Amazon Purchases
While Amazon doesn‘t directly take Paypal, there are still a handful of workarounds that let you use your Paypal funds to complete Amazon purchases:
1. Buy an Amazon Gift Card with Paypal
One of the simplest methods is to purchase an Amazon gift card from a retailer that accepts Paypal, like PayPal Gifts, Gyft or GiftCards.com.
Over 65% of digital gift card sales happen through Paypal, so you‘ll have plenty of choices. Amazon gift cards come in denominations from $1 up to $2,000.
Once you‘ve used your Paypal balance to buy the Amazon gift card, you can apply the claim code to your Amazon account and use it as your payment method.
Pros:
-
Simple and straightforward
-
Available for gift cards up to $2,000
Cons:
-
Can‘t split payment between gift cards and other methods
-
Need to wait for e-delivery of gift card claim code
2. Use a Paypal Debit Card
Paypal offers several debit card options connected directly to your Paypal account balance, including:
-
Paypal Cash Card – Can be used online or in-store anywhere Mastercard is accepted
-
Paypal Business Debit Card – For in-store purchases using Paypal Business accounts
To use your Paypal debit card on Amazon, simply add it as a payment method under Your Account > Payment options just like any other debit or credit card.
Around 29% of Americans have used a prepaid or debit card for online shopping in the past year according to Statista data, so this option likely already feels familiar.
Pros:
-
Can be used seamlessly like any Visa/Mastercard
-
Eligible for rewards points, cashback, etc.
Cons:
-
Must wait for physical card to arrive
-
Monthly fee if balance falls below $500
3. Set Up Paypal Key
Paypal Key allows you to shop anywhere that accepts Mastercard by generating a secure, virtual card number connected to your Paypal account.
To use this on Amazon, go to Paypal to create your Key, then copy the card details into Amazon‘s payment method page. Enter the Paypal Key as you would any other debit card.
The Paypal Key method keeps your real card details hidden from merchants. You can generate up to 10 virtual cards at once for different sites.
Pros:
-
More secure than entering your personal card info
-
Can instantly generate virtual details, no physical card wait
Cons:
-
Limited availability – only for US Paypal users currently
-
Occasional use limits on some virtual cards
Paypal vs. Other Ways to Pay on Amazon
Paypal might be your top choice for online payments. But if you‘re shopping on Amazon specifically, there are a few other payment methods worth considering:
Amazon Pay
Amazon Pay is Amazon‘s own digital wallet, similar to Paypal. You can add your credit, debit, and bank accounts to make 1-click payments on Amazon using Amazon Pay.
Around 37% of Amazon customers have used Amazon Pay in the past 6 months according to a Statista survey. And Amazon is pushing to expand it – they recently acquired Tapzo to boost Amazon Pay in India.
Pros
-
Stored payment methods for quick checkout
-
Option to pay in installments through Amazon Credit Line
-
Earn rewards points on eligible purchases
Cons
-
Less flexible than Paypal for non-Amazon purchases
-
Limited international availability outside US
Buy Now, Pay Later Services
Installment payment services like Affirm, Afterpay, and Klarna give you the option to split your Amazon order total across multiple smaller payments over time.
For example, Klarna offers payment plans where you pay for Amazon purchases over $50 in 4 interest-free installments every 2 weeks.
These buy now, pay later services have exploded in popularity in recent years:
- Klarna US market share increased 95% YoY in 2021
- Afterpay saw a 44% increase from 2020 to 2021, hitting nearly 3 million US users
- Affirm facilitated $12.7 billion in loans in 2021, a 77% YoY increase
Pros
-
Break payments into smaller installments
-
Often interest-free payment plans
-
Build credit with on-time payments
Cons
-
Late fees if you miss installment payments
-
May encourage overspending beyond budget
Credit & Debit Cards
Of course, you can always just enter your credit or debit card details directly on Amazon for simple checkout.
Credit cards dominate online purchases – about 75% of US ecommerce spending is on credit cards according to payments industry data. Debit cards account for another 18% of online spend.
Top payment methods on Amazon:
- Visa (46% market share)
- Mastercard (29% market share)
- American Express (20% market share)
- Discover (6% market share)
Using your standard credit or debit card is straightforward and accepted everywhere. But it lacks some of the flexibility, security, and rewards you get with services like Paypal or Amazon Pay.
Pros
-
Ubiquitous payment method accepted everywhere
-
Simple and fast one-click checkout
Cons
-
Less flexibility than specialized payment services
-
Enter your card details each time at checkout
No single payment method is necessarily better or worse than the others here – it all depends on your shopping preferences and needs! Evaluating the pros and cons can help decide which option fits best.
Complete List of Amazon Payment Methods
In addition to the major methods above, here is the full list of ways you can pay on Amazon:
-
Debit cards – Visa, Mastercard
-
Credit cards – Visa, Mastercard, AmEx, Discover, JCB, Diners Club
-
Amazon Prime credit card – 5% back on Amazon purchases
-
Amazon Store Card – Special financing offers from Synchrony
-
Amazon Secured Card – Card usable on Amazon, build credit
-
Amazon Pay – Checkout with stored credentials
-
Affirm – Pay in installments over 3, 6, or 12 months
-
Afterpay – Pay 25% upfront, remainder in 3 installments
-
Klarna – No interest if paid in 30 days, or 4 installments
-
Amazon gift cards – Physical or e-gift cards from $0.10 to $2,000
-
Amazon Cash – Add cash at retailers like CVS and 7-Eleven
-
Amazon PayCode – Pay with cash at Western Union locations
-
WIC & EBT – Benefits from state nutrition programs
-
Amazon Business line of credit – Special financing for business purchases
Amazon really offers a phenomenal range of payment options to satisfy any preference. Now if only they‘d add Paypal to the list!
FAQs About Using Paypal on Amazon
Here are answers to some common questions about how Paypal works with Amazon:
Can you use Paypal Credit on Amazon purchases?
No, Amazon does not accept the Paypal Credit revolving credit line as a direct payment method. You‘d need to transfer funds from Paypal Credit to your Paypal balance first.
Is there any way to use Paypal Pay in 4 on Amazon?
Unfortunately Amazon does not support Paypal‘s buy now pay later service. You‘ll need to use one of Amazon‘s installment plans like Affirm or Klarna at checkout instead.
Can you transfer an Amazon gift card balance to your Paypal account?
There is no direct option to move Amazon gift card funds to Paypal. You‘d need to purchase a gift card with Paypal at full value, then redeem items on Amazon to effectively transfer the balance.
Does using a Paypal debit card on Amazon qualify for rewards?
Yes! Purchases made on Amazon with a Paypal debit card qualify for any eligible rewards just like a regular credit or debit card, since it processes through Mastercard.
What happens if Amazon shuts down my Paypal Key card?
In some cases Amazon may blacklist certain virtual Paypal Key cards. But you can simply generate a new card number to continue using your Paypal funds.
I hope these FAQs help explain how you can creatively integrate Paypal with Amazon! Let‘s recap the key tips:
Recap: How to Use Paypal on Amazon
While you can‘t directly link your Paypal account on Amazon in 2024, there are still a few workarounds:
-
Buy an Amazon gift card using your Paypal balance, then redeem it on Amazon.
-
Use a Paypal debit card like the Paypal Cash Card by adding it as a payment method.
-
Set up Paypal Key to generate a virtual debit card number for Amazon checkout.
-
Consider Paypal alternatives like Amazon Pay, Affirm, Klarna or direct credit/debit cards.
-
Check Amazon‘s full payment method list to explore all options available.
I hope this guide gave you all the details on how to tap into your Paypal funds for Amazon purchases. Let me know if you have any other questions!
