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.

Share this post on: