Amazon challenges PayPal with ‘Login and Pay' one-click option

Amazon challenges PayPal with ‘Login and Pay' one-click option

Summary: From the customer side, the advantage is being able to pay virtually instantly with all of the billing and shipping data being filled in by Amazon.

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Amazon is firing on all cylinders today in its efforts to draw more third-parties into its ecosystem.

Along with a new developer program filled to the brim with incentives for makers of optimized Fire OS apps, the Seattle-based operation has introduced a new one-click "Login and Pay" feature designed for third-party online retailers.

Basically, online retailers outside of Amazon.com can install "Login and Pay with Amazon" buttons on their checkout pages through a set of widgets and APIs crafted by Amazon. The feature is supported on both desktop and mobile channels.

Immediately upon introduction on Tuesday, the new e-commerce feature sparked comparisons with a similar offering from PayPal.

Nevertheless, such a feature makes complete sense coming from Amazon given its dominance in the online retail space and the cloud capabilities to support an infrastructure linking third-party businesses with Amazon's own customer profile base.

According to Tom Taylor, vice president of Amazon's Payments unit, Amazon retains more than 215 million active customer accounts.

From the customer side, the advantage is being able to pay virtually instantly with all of the billing and shipping data being filled in by Amazon.

Amazon assured in Tuesday's announcement that it does not "share" credit card information, and all purchases are still covered by its purchase guarantees as if they were shopping directly on Amazon.com.

On the merchant side, Amazon is promising fraud protection for free -- or at least included in what is touted as lower pricing on payments services: 2.9 percent plus 30 cents per transaction, or less. That's on par with the entry level on PayPal's pricing ladder.

For a closer look at Login and Pay with Amazon, check out the promo video below:

Topics: E-Commerce, Amazon, Apps, Mobility, Web development

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35 comments
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  • one click option

    I used to have such an account with Amazon. When I got a new credit card # I dropped it, I don't buy much from Amazon anyway. This may be new technology, but it is not a new concept for Amazon.
    dhays
    • Not new with Amazon, but other sites

      I believe the point is that current Amazon users can now take advantage of this function outside of Amazon. For Amazon users that enjoy this feature, they can now leverage this same feature on other sites that support this. The advantage to those other commerce sites is they may gain customers that have more confidence in buying from them if they are already accustomed to the Amazon ease of use and fraud protection for making purchases. That is the reason I use Paypal, but I suppose it is nice to have options.
      dancoiv
      • Cool

        I don't like PayPal, they don't really provide protection and they really aren't nice to their merchants either during a dispute, so I like this and hope many websites take advantage of it.
        cmwade1977
        • I must take issue with your PayPal remarks

          In the many years I've been using them, I've had two disputes with sellers and PayPal took care of it and in both cases PayPal, not the seller, refunded my money in a very timely manner - as in days, mot weeks. I like Amazon but, I trust PayPal more.
          carolinagirl38D
  • Yay!

    I love this. Despite having great credit, PayPal will not allow me to have an account with them. It turns out they reject a lot of people. And they want to get in MY bank account. It is me who should be vetting them.

    I hope eBay will use this option. I have wanted to sell on eBay but cannot because of the PayPal snafu.

    Long live Amazon!!
    sing4you
    • Ebay owns PayPal...

      So if you think Ebay is going to support this, then keep dreaming.

      How much "Pay by google wallet" or "bitcoin" do you see on Ebay? I haven't seen any, so I doubt Amazon would get a foothold unless they bought out Ebay/Paypal.
      Zorched
      • Yes, but there is one major difference here.

        You see, google never challenged the restrictions and kind of downplay their payment processing because Ebay happens to be one of their biggest ad buyers. Ebay even cut them off for a while to make sure they got the point.

        Amazon might very well be able to sue Ebay for restraint of trade if they do not allow sellers to the option to use it.

        The practice of forcing most people to use PayPal is called bundling and violates
        anti-trust laws. They do have a fig leaf of alternatives, but I'm sure that under
        any serious kind of review it will fall or worse, put them under greater scrutiny of
        some politician looking for a good issue. Lots of sellers abused by PayPal over the
        years and PayPal also happens to be Ebay's biggest profit center since they charge sellers the same fee for money coming from someone bank or PayPal balance as if it were coming from a credit card.
        richard233
        • Great news

          Anything and anyone that challenges the ebay/paypal monopoly gets my vote. As a seller these guys are judge and jury and also charge excessive fees. As a buyer I trust Amazon as much, if not more than Paypal. I just hope one day Amazon offers an alternative to eBay itself.
          david.brownjohn@...
          • "I just hope one day Amazon offers an alternative to eBay itself"

            they've been doing that for a while. they just don't do auctions but they do everything else ebay does.
            vpupkin
          • alternative to ebay

            I would recommend Amazon not get being a e-Bay Copycat. I trust anything from e-Bay must less than a Politician. I have friends That got royally screwed by trying to buy stuff through them. One was taken for 2K trying buy a vehicle, then when They talked to the supposed seller he extracted another $900.00 for so called Shipping charges. Other were taken for less money, but were taken. Despite contact with e-Bay help they got amount to a Laugh and screw you response.

            It was a Great idea when started, they had a Greate reputation and was strict about following guidelines putting money in escrow accounts and not releasing until the receiver of the goods say its okay . They no longer do that and if you get shafted you get no help from Ebay.

            Amazon already offered used and old products but under strict guidelines and only sellers they have vetted. So I say it would be a Bad ides for Amazon to go to the e-Bay route. It would destroy their hard earned reputation. e-Bay now has the reputation of pond scum.
            pjones
        • "merchant friendliness"

          "...they charge sellers the same fee for money coming from someone bank or PayPal balance as if it were coming from a credit card."

          If this is correct, it is a new PayPal practice. I haven't sold anything recently, but earlier this year, I was charged a fee only for credit card payments, not for payments from bank or PayPal balance. However, it's possible that I'm confusing "purchase payments" with "personal payments," for which I am certain there is no fee except for credit card.

          Regarding PayPal's "merchant friendliness," I have filed a dispute only once, back when Circuit City was buying up used electronics at their stores and selling them on eBay. I bought a mid-range item and received a basic item in the box of the mid-range item (two different models of ReplayTV); I could have bought the basic item new for less than I paid for this used mid-range item. Even though I had an e-mail from Circuit City admitting their error, they refused to refund me the money, and neither eBay nor PayPal sided with me. This was about 7 years ago or so, so maybe it's different now, but at the time, it was clear that if you were up against a seller who made them a lot of money in fees, you were probably going to lose.
          Cyraxote
        • That goes both ways.

          I don't see an option on Amazon to pay with Paypal.
          jsargent
      • You can pay what ever way you want on ebay.

        Ebay does not restrict an auction to just a Paypal transaction, they certainly make that really easy true. but a seller can allow a purchase by money order or western union or Google checkout or Amazon, a seller can even provide a link to each payment option in the automated email that a customer gets. This is discouraged and e-bay and Paypal will not get involved in deputes when an unsupported payment system., not should they.

        Ebay is changing the 'buy it now' operations to force a buyer to buy via Paypal by keeping the item listed and available for purchase even though a buyer committed to buy the item, but did not pay yet.
        HallCrash
  • only if

    that only works if the amazon account is connected to a paypal account - for me anyway. - in other words, unnecessary.
    promytius1@...
  • Single-Click is Insane

    I use both Pay Pal and Amazon. No matter who offers it. Single-click purchasing is insane. Anyone with a touchy touchpad or curious child would be purchasing all of the time. How hard is it to review details before the final "OK"?
    DixonAgee
  • Anything other than PayPal

    My experience with PayPal is that they're extremely irresponsible when it comes to disputes. They concentrate on the usual non-problematic profitable exchanges, and do their best to deny any respnsibility when difficulties arise. I currently avoid them and use Google Wallet wherever I can, and it is excllent to have a new alternative.
    Borodin
    • Tokens, anyone?

      The eBay / PayPal two step token login is an idea I wish they would all copy. It's even better than Google's two step login, which is good, as far as it goes but, an actual token is so much nicer.
      carolinagirl38D
  • Amazon and Pay Pal

    I recently used this feature to purchase a new computer. As an Amazon Prime customer, I enjoyed all the benefits of Prime, the convenience of having all my information with Amazon, and not having my credit card out at yet another retailer. I loved it and think it's a great feature.
    velardi@...
  • There is a cheaper alternative

    So when is Amazon going to cut MC, V, & DC out of the loop and support low-cost Dwolla (0% & $0.25 per transaction!) ???
    James R Shaw
    • Dwolla ??

      The rest of the world doesn't know what Dwolla is. Do you think that Amazon only sells to the USA?
      jsargent