Amazon Pay

What is Amazon Pay

Amazon Pay is an online payment processing service offered by the global e-commerce company, Amazon. Founded in 2007, it allows the vast base of Amazon customers to use their existing Amazon accounts to pay for goods and services on third-party websites and apps. The core purpose is to simplify the checkout process, making it faster and more secure. Instead of creating a new account or entering credit card and shipping details on an unfamiliar site, customers can simply log in with their Amazon credentials. This leverages the trust and familiarity of the Amazon brand to benefit other online merchants. Amazon, the parent company, was founded in 1994 and is headquartered in Seattle, Washington, USA.

Amazon Pay Features

Amazon Pay offers several features designed to improve the checkout experience for both customers and merchants.

• Familiar Checkout Experience: Customers see a familiar button and use their existing Amazon login details. This builds trust and reduces hesitation during purchase.
• Fast and Easy Checkout: The service uses the payment and shipping information already stored in a customer's Amazon account, which removes the need to manually enter this data. This significantly speeds up the checkout process.
• Fraud Protection: Amazon Pay uses the same advanced fraud detection and prevention technology that Amazon uses on its own marketplace, protecting both merchants and shoppers from bad transactions.
• Mobile Optimization: The checkout process is fully optimized for mobile devices, providing a smooth experience for customers shopping on their phones or tablets.
• Support for Recurring Payments: Merchants can set up subscriptions and recurring billing for their customers, making it suitable for services that require regular payments.
• Voice-Enabled Payments: Through integration with Amazon Alexa, customers can make purchases using voice commands on enabled devices, offering a modern and convenient shopping method.
• Wide Integration: Amazon Pay integrates easily with major e-commerce platforms, shopping carts, and payment service providers.

Amazon Pay Pricing Plans

Amazon Pay does not use a tiered plan structure with monthly subscription fees. Instead, its pricing is based on a pay-as-you-go model. Merchants are charged a fee for each transaction processed through the service. This fee is typically a combination of a percentage of the transaction amount and a small fixed authorization fee. The specific rates can vary based on the country of the merchant and the transaction volume. For example, domestic transactions often have a different rate than cross-border transactions. High-volume businesses may be eligible for custom pricing.

Amazon Pay Free Plan

There is no 'free plan' in the traditional sense, as Amazon Pay does not charge any monthly fees, setup fees, or cancellation fees. It is free to install and have the Amazon Pay button on your website. You only incur costs when a customer makes a purchase using Amazon Pay. This model is beneficial for businesses of all sizes, especially smaller ones, as there are no upfront costs or ongoing commitments to use the service.

How to use Amazon Pay

Getting started with Amazon Pay as a merchant is a straightforward process.

1. Register for an Account: Go to the Amazon Pay website and sign up for a merchant account. You will need to provide information about your business.
2. Choose Integration Method: Decide how you will add Amazon Pay to your site. If you use a popular e-commerce platform like Shopify, BigCommerce, or WooCommerce, you can use a pre-built plugin or extension.
3. Configure the Plugin: Install the Amazon Pay extension for your platform and follow the instructions to configure it. This usually involves entering your merchant credentials obtained during registration.
4. Custom Integration: For custom-built websites, you will use the Amazon Pay API. The developer documentation provides all the necessary information and code samples to integrate the payment button and process transactions.
5. Test Your Setup: Use the provided Sandbox environment to run test transactions and ensure everything is working correctly before going live.
6. Go Live: Once testing is complete, switch from the Sandbox to the Production environment. The Amazon Pay button will now be active on your site for real customers.

Pros and Cons of Amazon Pay

Pros:

• Increased Trust: The Amazon brand is well-known and trusted, which can reduce cart abandonment.
• Higher Conversion Rates: A faster, simpler checkout process leads to more completed purchases.
• Access to Amazon Customers: It provides a convenient payment option for hundreds of millions of active Amazon users.
• Strong Security: Leverages Amazon's world-class fraud and payment protection technology.
• No Setup or Monthly Fees: You only pay when you make a sale.

Cons:

• Transaction Fees: The per-transaction fees can be higher than some other payment processors.
• Requires Amazon Account: Customers must have an Amazon account to use this payment method.
• Funds Settlement: Payouts are processed to your bank account on a set schedule, not instantly.

Amazon Pay integrations

Amazon Pay integrates with a wide range of popular e-commerce platforms and service providers, making it easy for merchants to add it to their stores.

• Shopify integration: Add Amazon Pay as a payment option directly from the Shopify payments settings.
• BigCommerce integration: A built-in integration allows for a quick and easy setup within the BigCommerce control panel.
• Adobe Commerce (Magento) integration: A dedicated extension is available on the Adobe Commerce Marketplace for seamless integration.
• WooCommerce integration: A free plugin allows WordPress and WooCommerce users to easily add the Amazon Pay button.
• Stripe integration: Merchants using Stripe can now add Amazon Pay as a payment method, combining Stripe's processing with Amazon's checkout experience.

Amazon Pay Alternatives

• PayPal: One of the most widely recognized online payment systems. Like Amazon Pay, it offers a trusted brand and a large user base. PayPal often provides more extensive tools for invoicing and direct money transfers.
• Stripe: A powerful and developer-focused payment platform. Stripe is highly customizable and supports a wider range of payment methods, including credit cards, digital wallets, and local payment options from around the world.
• Apple Pay: A mobile payment and digital wallet service by Apple. It offers a very fast and secure checkout on Apple devices but is limited to customers within the Apple ecosystem.
• Google Pay: Google's digital wallet platform. It provides a quick checkout experience for users logged into their Google accounts on Android devices and the Chrome browser.

Amazon Pay API

Yes, Amazon Pay provides a comprehensive set of APIs for developers who need to create custom integrations for their websites or applications. The API allows for full control over the checkout experience, from rendering the button to processing payments and handling refunds. Developers can get their API keys after registering for an Amazon Pay merchant account and setting up their application. The documentation, SDKs, and a sandbox environment for testing are available on the Amazon Pay developer portal.

Here is a conceptual example of a simple API call to create a checkout session:

// This is a simplified conceptual example

const amazonPayClient = new AmazonPayClient({ 
  publicKeyId: 'YOUR_PUBLIC_KEY_ID',
  privateKey: 'YOUR_PRIVATE_KEY',
  region: 'us',
  sandbox: true
});

const payload = {
  webCheckoutDetails: {
    checkoutReviewReturnUrl: 'https://your-site.com/review',
    checkoutResultReturnUrl: 'https://your-site.com/complete'
  },
  storeId: 'YOUR_STORE_ID',
  chargeAmount: {
    amount: '10.99',
    currencyCode: 'USD'
  }
};

const checkoutSession = await amazonPayClient.createCheckoutSession(payload);
const checkoutSessionId = checkoutSession.checkoutSessionId;

Amazon Pay Affiliate program

Amazon Pay does not have a traditional public affiliate program where you earn a commission for referring new merchants. Instead, they offer a Partner Program for agencies, e-commerce platform providers, and developers who integrate Amazon Pay for their clients. Partners may receive benefits such as technical support, co-marketing opportunities, and inclusion in the partner directory. If you are interested in becoming a partner, you should visit the Amazon Pay website and look for their 'Integrations' or 'Partners' section to apply or contact their business development team for more information.