May 8, 2018
The potential of Amazon Pay has always outstripped its adoption, but a Bloomberg report from last week indicates the e-commerce juggernaut could be making a push to get more online merchants to offer it as an alternative at checkout. Amazon Pay has been a tough sell for Amazon given its competitive position with most other retailers—e-commerce or otherwise. Merchants simply don’t want to open the transaction data of their customers to Amazon, which they fear would simply use it to gain an even bigger advantage in e-commerce sales.
But, before Amazon ever became a competitive threat, merchants have felt their payment processing costs are higher than they should be. Amazon, which has never feared to sacrifice revenue for market share, is leveraging that discontent by offering a discount to merchants that use Amazon Pay. Merchants that offer Amazon Pay to their customers at checkout could enable Amazon’s approximately 300 million active account holders to use their stored payment credentials to make simplified, even one-touch, online payments.
Amazon did not comment on the story so neither the size of the discount, nor the number of retailers to which Amazon has offered the arrangement is clear.