• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Gen Zers are arriving at college unable to even read a sentence—professors warn it could lead to a generation of anxious and lonely graduates

2

'We didn’t see this coming': Wall Street eats its forecasts as stocks sell off globally on fear of AI bubble ahead of SpaceX IPO

3

'The golden years are not golden': Boomers are hoarding most of America's wealth and power because they're terrified of outliving their money

1

Gen Zers are arriving at college unable to even read a sentence—professors warn it could lead to a generation of anxious and lonely graduates

2

'We didn’t see this coming': Wall Street eats its forecasts as stocks sell off globally on fear of AI bubble ahead of SpaceX IPO

3

'The golden years are not golden': Boomers are hoarding most of America's wealth and power because they're terrified of outliving their money
TechAmazon

Amazon’s PayPal Competitor Is Growing

By
Leena Rao
Leena Rao
Down Arrow Button Icon
By
Leena Rao
Leena Rao
Down Arrow Button Icon
January 26, 2016, 8:00 AM ET
Photo Courtesy: Getty Images

Amazon is touting the growth of its digital wallet, Pay With Amazon, as a way for its vast army of customers to shop with third party merchants using their Amazon credit cards and shipping details.

Last year, payment volume through the service on other retailers’ sites rose 150% from 2014, the company said. But as usual, it declined to reveal additional details like the total value of those sales that would have shown whether Pay With Amazon has any real traction with shoppers.

Introduced in 2013, Pay with Amazon is used by the likes of GoGo in-flight Wi-Fi and clothing retailer All Saints as an alternative to paying with PayPal or signing in and paying with a credit card. It’s Amazon’s answer to digital wallet PayPal and a growing number of other rivals including Apple, Google, and Walmart.

Pay with Amazon may be growing, but online and mobile payments are more competitive now than ever. PayPal, Apple Pay and Google’s Android Pay all offer mobile wallets and let merchants and app developers accept payments on mobile phones.

Patrick Gauthier, who leads Amazon’s outside payments push, explains that retailers that adopt Pay With Amazon can let Amazon’s 285 million account holders buy items online and in mobile phones without having to re-enter billing, shipping, and financial information. Amazon makes money by charging merchants fees for each transaction, which amount to 2.9% of the order value plus 30 cents.

Get Data Sheet, Fortune’s technology newsletter

Over 23 million Amazon customers have used their Pay with Amazon accounts at non-Amazon merchants over the past two years.

Gauthier claims that one of the biggest advantages for merchants to offer Pay with Amazon is to tap into the company’s growing base of Prime members, who make up an estimated 38% of American households, according to new analyst reports. Prime members account for more than 50% of customers who use Pay with Amazon on third-party sites, Amazon said.

As part of the company’s subscription service, Amazon Prime, users can access streamed movies, TV shows, and Amazon’s original productions, in addition to free two-day shipping on orders. Gauthier explains that Prime members are known to be more active online shoppers and spend more than average customers.

Amazon reported that 60% of Pay with Amazon’s users have an income higher than $100,000.

For more on Amazon’s cloud ambitions, watch this:

One challenge Amazon faces when convincing large online merchants to use its PayPal-like service. Amazon’s online marketplace is often a competitor to other online retailers, some of which may not want to share data with a the e-commerce juggernaut.

But Amazon said that the payments data from Pay with Amazon isn’t shared, and that actual transaction data is private. Gauthier added that Amazon is not targeting big brands online because their e-commerce systems are more complex and can’t easily add new technologies like modern online payments.

Pay with Amazon tends to attract more mid-size retailers and merchants who want to tap into Pay with Amazon’s user base. Amazon said the number of merchants using Pay With Amazon grew 200% in 2015, but then didn’t reveal the number of merchants involved.

 

About the Author
By Leena Rao
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Brian Schimpf gestures with both hands as he speaks on stage.
Startups & VentureBrainstorm Tech
Anduril CEO Brian Schimpf says economic warfare is the ‘new normal’ for military conflicts—and the U.S. needs to get serious
By Lily Mae LazarusJune 8, 2026
2 hours ago
Pentagon accuses Alibaba, Baidu and BYD, three of China’s biggest companies, of supporting the Chinese military
AsiaAlibaba Group
Pentagon accuses Alibaba, Baidu and BYD, three of China’s biggest companies, of supporting the Chinese military
By Kate O'Keeffe and BloombergJune 8, 2026
2 hours ago
Twitch CEO: Social media has become ‘antisocial’ and can’t match the shared, human connection of livestreaming
Big TechBrainstorm Tech
Twitch CEO: Social media has become ‘antisocial’ and can’t match the shared, human connection of livestreaming
By Sebastian HerreraJune 8, 2026
3 hours ago
Two men sitting on chairs on a stage
Future of WorkBrainstorm Tech
Your career needs a ‘gym membership’ to keep up with continuous AI advancements, says Campus founder Tade Oyerinde
By Amanda GerutJune 8, 2026
3 hours ago
ChatGPT maker OpenAI confidentially files for IPO, a week after Anthropic
Startups & VentureOpenAI
ChatGPT maker OpenAI confidentially files for IPO, a week after Anthropic
By Bloomberg, Shirin Ghaffary and Bailey LipschultzJune 8, 2026
4 hours ago
Anthropic’s Boris Cherny, creator of Claude Code, says there are days he manages tens of thousands of AI agents at once
AIBrainstorm Tech
Anthropic’s Boris Cherny, creator of Claude Code, says there are days he manages tens of thousands of AI agents at once
By Sharon GoldmanJune 8, 2026
5 hours ago

Most Popular

Gen Zers are arriving at college unable to even read a sentence—professors warn it could lead to a generation of anxious and lonely graduates
Success
Gen Zers are arriving at college unable to even read a sentence—professors warn it could lead to a generation of anxious and lonely graduates
By Preston ForeJune 7, 2026
1 day ago
'We didn’t see this coming': Wall Street eats its forecasts as stocks sell off globally on fear of AI bubble ahead of SpaceX IPO
Economy
'We didn’t see this coming': Wall Street eats its forecasts as stocks sell off globally on fear of AI bubble ahead of SpaceX IPO
By Jim EdwardsJune 8, 2026
16 hours ago
'The golden years are not golden': Boomers are hoarding most of America's wealth and power because they're terrified of outliving their money
Economy
'The golden years are not golden': Boomers are hoarding most of America's wealth and power because they're terrified of outliving their money
By Nick LichtenbergJune 7, 2026
2 days ago
Current price of oil as of June 8, 2026
Personal Finance
Current price of oil as of June 8, 2026
By Joseph HostetlerJune 8, 2026
12 hours ago
Trump stunned as stocks fall on great jobs report. Barclays explains why ‘we are entering the warning zone'
Big Tech
Trump stunned as stocks fall on great jobs report. Barclays explains why ‘we are entering the warning zone'
By Eva RoytburgJune 7, 2026
1 day ago
SpaceX's IPO will also be a massive selling event triggering big price dislocations across the stock market as investors dump shares to buy SPCX
Investing
SpaceX's IPO will also be a massive selling event triggering big price dislocations across the stock market as investors dump shares to buy SPCX
By Jason MaJune 7, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.