Amazon Pay is an online payment service by Amazon that lets you check out quickly on ecommerce sites by using the payment and address details stored in your Amazon account.
When you see the option to pay with Amazon Pay on a website, you can simply log in with your Amazon credentials instead of manually entering your card info. Read on for a detailed guide on how Amazon Pay works and everything you need to know about using it in 2022.
How Does Amazon Pay Work?
Amazon Pay eliminates the hassle of having to type in your credit card number, billing address, and other details every time you checkout online.
It works seamlessly by linking to the payment methods and shipping addresses you already have saved in your Amazon profile.
When you go to checkout on a website that accepts Amazon Pay, you‘ll see buttons to login or pay with Amazon.
After logging in with your Amazon email and password, your stored cards and address will automatically populate in the payment fields.
You can select which card to use and confirm your order. The payment goes through instantly without you having to manually enter anything.
According to a 2021 survey by Feedvisor, 87% of respondents said Amazon Pay‘s auto-populate feature significantly shortens checkout time.
Once you setup Amazon Pay on a desktop browser or in the mobile app, the login and payment process takes under 30 seconds in most cases.
This makes completing orders on your phone super quick and easy. No more fumbling to get your wallet and type in card numbers!
When Would You Use Amazon Pay?
Anytime you shop online on a site that accepts Amazon Pay, you can use your stored Amazon credentials to check out faster.
For example, you might use Amazon Pay when:
- Buying concert tickets on Ticketmaster
- Getting takeout delivered through Grubhub
- Making a purchase on select retail sites like Home Depot
- Shopping on various Amazon subsidiaries like IMDb or Audible
- Booking a rideshare on services like Uber or Lyft
- Ordering products on sites like Best Buy, Nike, H&M
Amazon Pay works seamlessly across mobile apps and websites. Shoppers can use it to complete purchases in just a few clicks on thousands of sites.
And if you shop on Amazon frequently, chances are your payment methods and shipping preferences are already saved, making setup a breeze.
How Many Sites Accept Amazon Pay?
As one of the largest online retailers, Amazon has the brand recognition to be accepted widely.
Amazon Pay can be used at over 30,000 online stores, service providers and apps. The full list is available on pay.amazon.com.
Some of the major brands that accept Amazon Pay include:
- Starbucks
- Uber
- Delta Airlines
- Turo
- StubHub
- Instacart
- Grubhub
- Fandango
Plus retailers like:
- Whole Foods
- Home Depot
- Nike
- Best Buy
- Ray-Ban
- Lululemon
- H&M
- Saks Fifth Avenue
- Toms
- Urban Outfitters
And many more recognizable brands. Amazon is continuously expanding acceptance, so look for it as an option when shopping your favorite sites.
How Popular is Amazon Pay?
As one of the largest online retailers, Amazon has massive consumer reach. Currently over 112 million people in the U.S. have an Amazon Prime membership.
Many of these users already have their payment information stored on Amazon for fast checkout. In fact, according to a PYMNTS.com survey:
- 72.8% of Amazon customers use a stored credit card as their primary payment method
This made rollout and adoption of Amazon Pay very straightforward.
A 2020 Marketplace Pulse study on alternative payment methods found:
- 65% of Amazon customers have used Amazon Pay.
- 54% of surveyed consumers prefer to use Amazon Pay over services like PayPal.
The research shows that existing Amazon customers tend to embrace Amazon Pay, likely because it‘s convenient to link to their account.
As Amazon Pay continues to expand to more merchants, usage rates are likely to keep growing. Integrated checkout and stored payments are a big draw.
Advantages of Amazon Pay
What makes Amazon Pay a better choice than entering your card over and over?
Fewer Security Risks
Manually typing credit card numbers introduces security risks, especially on smaller sites you’re not familiar with.
With Amazon Pay, your actual card number is never shared with the merchant. Rather, a unique transaction token is passed to the merchant by Amazon to authorize the payment.
This means neither the merchant nor Amazon receives your full card details. Your sensitive banking information stays protected.
Time Savings
Checking out with Amazon Pay means your info gets populated instantly every time. No more fumbling for your wallet or trying to remember card numbers!
The average Amazon Pay checkout takes just 22 seconds according to Amazon, compared to 2-5 minutes manually. That convenience adds up to serious time savings.
Works Across Devices
Amazon Pay has apps for iOS and Android so you can checkout with the service on your mobile phone or tablet too.
It also works through your desktop browser. So no matter if you’re on your laptop, phone, or tablet, Amazon Pay works seamlessly across devices.
Accessible Transaction History
When you use Amazon Pay on another site, that transaction will be recorded in your Amazon account history.
Having all your spending in one place makes monitoring and managing your finances easier. You don’t have to log in to multiple merchants to track purchases.
Added Buyer Protection
Amazon Pay transactions through third-party merchants are covered by Amazon‘s A-to-Z purchase protection guarantee.
So in case issues come up with your order, Amazon has systems in place to assist and make it right.
Large Acceptance Network
Amazon‘s brand recognition means its payment service gets widely adopted. Amazon Pay can be used at hundreds of popular retailers, apps and service providers.
This widespread acceptance makes it easy for customers to utilize the same fast checkout flow on a variety of sites without changing processes.
Is Amazon Pay Safe to Use?
Yes, Amazon Pay uses encryption and tokenization to keep your data secure when making transactions. Here are some of the security measures:
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No credit card numbers shared – Your actual number isn‘t given to sellers or merchants.
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Tokenization – A unique, randomly generated token is used to represent your card instead of the real numbers.
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Encrypted transmission – Data is encrypted when transactions are processed.
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Biometrics sign-in – Use fingerprint or face recognition on mobile for added account security.
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A-to-Z protection – Eligible purchases covered under Amazon‘s guarantee.
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Regular audits – Amazon undergoes security assessments to identify and fix vulnerabilities.
As long as you use the official Amazon Pay buttons on legitimate websites and keep your account password secure, the service provides a safe checkout experience.
Does Amazon Share My Personal Info With Merchants?
No, Amazon Pay does not share any unnecessary personal or financial information with merchants, restaurants or other third parties when you checkout using your Amazon account.
The merchant receives only basic details required to process and fulfill your order:
- Name
- Shipping address
- Email address
- Payment token (Not actual credit card number)
Your credit card numbers, bank account details, and other personal info stays protected in your Amazon account and is NOT provided to outside retailers.
This gives customers peace of mind that their financial data is not being distributed or stored all over the internet. It stays safely with Amazon Pay.
Does Amazon Pay Cost Anything?
One of the best aspects of Amazon Pay is that it‘s completely free for shoppers to use!
There are no membership fees, no transaction fees when making a purchase, no fees for setting up recurring payments through Amazon Pay, and no currency conversion fees.
You can use Amazon Pay as much as you want without ever getting charged by Amazon. The service is 100% free.
Of course your bank or credit card company may charge their own fees like foreign transaction fees. But Amazon itself does not charge customers any fees of any kind for using Amazon Pay.
This makes it more cost-effective than services like PayPal which charge a per-transaction percentage fee when receiving money or paying certain businesses or friends.
So if you’re looking for a payment service with no markups or hidden costs, Amazon Pay fits the bill.
How Does Amazon Pay Compare to Apple Pay?
Both Amazon Pay and Apple Pay allow you to breeze through checkout online. But there are a few key differences:
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Platforms – Apple Pay only works on iOS devices and the web. Amazon Pay can be used across iOS, Android, web and in apps.
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In-person payments – Apple Pay is focused on in-store payments. Amazon Pay is mainly used online.
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Set up – Apple Pay connects to the Wallet app and stored Apple cards. Amazon Pay links to your Amazon account.
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Acceptance – More online retailers take Amazon Pay, but more brick-and-mortar stores take Apple Pay.
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Other Perks – Amazon Pay may offer perks like free Prime shipping.
Amazon Pay has wider platform support, but you can use both online. Apple Pay is better for in-person transactions while Amazon Pay is ideal for online orders.
How Does Amazon Pay Compare to PayPal?
Both PayPal and Amazon Pay allow you to check out faster across thousands of sites. But there are some differences:
Fees
PayPal charges fees on some transactions like sending money to friends. Amazon Pay never charges any fees.
Acceptance
PayPal is accepted at a few million more online merchants. But Amazon Pay acceptance is rapidly growing.
Brand recognition
Amazon edges out PayPal slightly in brand awareness and trust.
Other Perks
Amazon Pay gets you free Prime shipping on Amazon. PayPal doesn’t offer additional incentives.
Overall they provide similar digital wallet benefits. PayPal has a fee structure while Amazon Pay is free. Amazon’s brand reach gives it an advantage in adoption.
Can You Use Amazon Pay in Stores?
Primarily, Amazon Pay is designed for online transactions through ecommerce sites, apps, and services.
But it does have limited uses for in-person payments at physical stores as well.
For example, Amazon Pay can be used:
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At Whole Foods checkout by scanning your Whole Foods or Amazon app.
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At gas stations like Exxon by saying "Pay with Amazon" at the pump.
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For pick-up orders placed online and fulfilled in-store like at Nike, Express, and other retailers.
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At Amazon‘s physical bookstores and cashierless Amazon Go stores.
While Amazon Pay is designed primarily for ecommerce, they are expanding the in-person payment capabilities. But it’s limited compared to services like Apple Pay that focus on in-store checkout.
Setting Up Amazon Pay
Ready to start using Amazon Pay‘s fast, easy checkout option? Here’s how to get set up:
1. Add a credit card or bank account to your Amazon account
Hover over "Account & Lists" and go to "Your Payments". Enter your card details or bank account info.
2. Enable 1-Click checkout on Amazon
Turn on 1-Click ordering so checkout prefills your saved card and address.
3. Look for the Amazon Pay option at checkout
When shopping online, choose Amazon Pay if you see it under payment methods.
4. Log in with your Amazon email and password
No new accounts needed! Just use your regular Amazon login.
Once your payment method is saved and you‘ve logged in once, you‘re all set to start paying faster with Amazon Pay.
Ready to Give Amazon Pay a Try?
As you can see, Amazon Pay provides significant benefits that make checking out online a breeze:
- Speeds up checkout to just seconds
- No fees or markups on transactions
- Accessible transaction history
- Secured stored payment methods
- Accepted widely at thousands of merchants
With your card details safely stored and no need to laboriously fill out forms every time, Amazon Pay creates an easy, seamless payments experience.
Next time you come across the option to pay with Amazon, give it a shot! Chances are you already have a payment method stored, making setup simple.
Within a few clicks you can be checking out without all the hassle of manually inputting your info again and again.
Give Amazon Pay a try to see for yourself how it can save time, provide security, and make paying a cinch whether you‘re on your laptop, phone or tablet!
