Amazon Pay vs. PayPal: When Can I Cancel My PayPal Account?


I don’t use PayPal often and based on a recent experience with an unauthorized billing by the WSJ, I will be using it even less.

  • If you have a genuine problem regarding an unauthorized charge on PayPal, you have NO RECOURSE. There’s no one to call, there’s no online assistance. Fortunately, my charge was for a small amount but if it was larger, I’d be freaked.
  • That said, PayPal is doing phenomenally well. They just reported a spectacular quarter posting $106 billion in total payment volume (TPV), an increase of 26% annually. They also added 6.5 million customers — the highest total in three years — to hit 210 million users. And the company is growing organically, with annual transactions per user increasing by 10%.
  • And I do love using Venmo, their peer-to-peer payment service.

However, I am still distressed by my recent experience with PayPal. Totally non-communicative and clearly more in their vendors’ camp than supportive of users like me. Read on below for more on what Amazon Pay is offering.

Besides shopping on Amazon, I use them primarily as an easy way to get refunds, credits  or payments from companies like Gazelle.

And it’s not clear if I can use Amazon Pay in lieu of PayPal. Anyone have any insights on this?

Here’s what I do know Amazon is offering:

An easy and secure way for consumers to make online payments and merchants’ to accept them with Amazon Pay. 

  • Users can now make frictionless and secure payments on participating merchants websites by using a one-click checkout, using the payment information the users have saved on their Amazon accounts.

And here’s why competitors should take notice – are you paying attention PayPal??

Amazon has the reach. 

  • The company has a massive user base — the Amazon app is installed on three out of 4 smartphones in America.
  • The company’s subscription based loyalty program, Amazon Prime, had an estimated 80 million members in the US alone, and Amazon Pay has over 33 million users.

It has the capital. 

  • Amazon not only accounts for a massive amount of sales but it has also shown a willingness to make big bets on future growth opportunities that aren’t always obvious.
  • Its recent acquisition of Whole Foods for $13.7 billion is a good example.

It has the infrastructure in place to build out a payments network quickly. 

  • Amazon Web Services (AWS), the company’s cloud solution, has the capacity to handle the processing of payments if it were to push further into the space.
  • As of Q1 2017, AWS controlled 33% of the global public cloud market, more than Microsoft, Google, IBM, Alibaba, and Oracle combined, according to the most recent figures from Synergy Research.

Here’s more info from Business Insider.

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