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Wed Aug 10 2011 23:16:32

PayPal: It's Everywhere You Want to Be - Except Amazon

By: Ina Steiner

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PayPal is making inroads among large online retailers with its merchant services offerings, but the toughest nut to crack happens to be the largest online retailer: Amazon.com. No doubt PayPal would be ecstatic if it could be an accepted payment method on Amazon.com's marketplace. But what would it take to make that happen, given that the two companies are fierce competitors both in marketplaces and in payments?

Might there come a day when you could pay for your Amazon.com purchases using PayPal? Right now, it's hard to imagine Amazon allowing eBay's online payment service on to its site in the foreseeable future. But for PayPal, it's the holy grail of retail accounts.

We asked Amazon if it would ever consider offering PayPal as a payment method; a spokesperson said the company had a long-standing practice of not discussing what it may or may not do in the future. There are clues to indicate what the answer might be, however.

The first indication goes back to 2008 when Amazon kicked off Bill Me Later, a service it had liked so much that it had invested in the company (some pegged the investment at 10%). But once eBay acquired the company, Amazon said see you later and removed the service - even though numbers likely showed incremental sales from offering customers transaction-based financing.

Another major sticking point: eBay does not allow Amazon Payments on its site.

The third and probably one of the most important reasons why Amazon would be reluctant to let PayPal onto its site is because it hates sharing information. With online payments, it's much more than a service for the convenience of buyers and sellers. Amazon would be opening the doors to closely guarded transactional data on its marketplace.

Lest you think eBay could keep information in silos within the organization, look no further than the eBay versus Craigslist trial in 2009 when executives testified they shared confidential, proprietary Craigslist data with eBay's classifieds division.

There's precedence for eBay competitors opening their doors to PayPal, including Etsy and Bonanza, but those online marketplaces don't have their own online payment service.

Finally, PayPal and eBay are aggressively going after the mobile payments and mobile commerce space. That's an area Amazon.com will not want to cede. But if PayPal wins as big there as it hopes (and it would take some time for that to happen) and ultimately becomes the winning mobile wallet, that could open a chink in Amazon's wall that could make it reconsider its PayPal ban.

Let us know if you can envision a day when you use your PayPal account to pay for a purchase on Amazon.com.




Comments (28) | Permalink

Readers Comments

PayPal: It's Everywhere You Want to Be - Except Amazon   PayPal: It's Everywhere You Want to Be - Except Amazon

by: Rich

Thu Aug 11 00:10:25 2011

No way Amazon ever lets Paypal on their site.  That would be throwing money away. Amazon is number for a reason.  They don't throw money away.  

PayPal: It's Everywhere You Want to Be - Except Amazon   PayPal: It's Everywhere You Want to Be - Except Amazon

by: pete

Thu Aug 11 00:40:41 2011

eBay Inc can keep its Barstard child Paypal ..We dont need their scamming users on Amazon.
Amazon works very well sending out cheques every 2 weeks without fake chargeback claims etc.
PAYPAL NO WAY

PayPal: It's Everywhere You Want to Be - Except Amazon   PayPal: It's Everywhere You Want to Be - Except Amazon

by: Digby
Web Site

Thu Aug 11 00:45:21 2011

The sooner that ebay sells Paypal so that both companies can concentrate on their own activities the better.

Then Amazon may consider allowing Paypal paynents.

PayPal: It's Everywhere You Want to Be - Except Amazon   PayPal: It's Everywhere You Want to Be - Except Amazon

by: Xander

Thu Aug 11 00:51:17 2011

Why would Amazon bother with paypal?
There's too much to lose by letting any part of ebay into their organization. With so many people trying to get away from paypal, why add something they don't need? Unless Amazon is specifically going after a younger market where mobile is popular, it wouldn't make any sense.
Mobile payments equals more returns. If buyers don't have enough time to research the item(s) they want on a big screen where they can read all the details, I'd expect there to be more mistakes when making purchases on their tiny phones.


PayPal: It's Everywhere You Want to Be - Except Amazon   PayPal: It's Everywhere You Want to Be - Except Amazon

This user has validated their user name. by: Ming the Merciless

Thu Aug 11 01:22:37 2011

Not only do I hope Amazon NEVER accepts PreyPal, I hope Visa, Amazon, and Google payments annihilate PreyPal.

It's past time to get ALL these online payment services vigorously regulated.

PayPal: It's Everywhere You Want to Be - Except Amazon   PayPal: It's Everywhere You Want to Be - Except Amazon

by: John

Thu Aug 11 05:04:03 2011

Even in business it appears you get one chance to make a first impression. eBay's little Craig s list data sharing.....Aside from that, Amazon up 51% for their last quarter and no pay-pal. It's a no brainer.

PayPal: It's Everywhere You Want to Be - Except Amazon   PayPal: It's Everywhere You Want to Be - Except Amazon

by: Let them

Thu Aug 11 06:26:57 2011

What Amazon should do is tell ebay that they will take paypal if ebay lets people use amazons payments.

Ebay in their infinite greed would jump on it.
Then everyone on ebay would switch to Amazon payments and noone on Amazon would use PP.

And poof, bye bye paypal!!!
It would be JD's ultimate failure.

PayPal: It's Everywhere You Want to Be - Except Amazon   PayPal: It's Everywhere You Want to Be - Except Amazon

This user has validated their user name. by: My Two Cents

Thu Aug 11 06:30:07 2011

Perhaps Amazon will someday buy Pay Pal?

PayPal: It's Everywhere You Want to Be - Except Amazon   PayPal: It's Everywhere You Want to Be - Except Amazon

by: Janie

Thu Aug 11 07:01:39 2011

Ebay & Paypal are both evil. They are like drunks drinking together then fighting with each other & both blaming each other. Feebay & preypal have ruined my life till I threw them both out the door & am much happier now. Amazon is way to smart to get involved in all this ignorance that ebay & paypal cause to sellers. People are fleeing ebay by the thousands. Go on ebay & search an item that used to have hundreds of little people selling, not one left only companies selling for more than a regular retair store.

PayPal: It's Everywhere You Want to Be - Except Amazon   PayPal: It's Everywhere You Want to Be - Except Amazon

by: Let's Hope NOT
Web Site

Thu Aug 11 07:37:43 2011

As others said - This is a NO BRAINER.

Why on earth would a well run, highly functional site like Amazon even THINK about allowing a thieving, bug infested, non-functional enity like papal access to their site?

Hell, half the reason I turned to Amazon in the 1st place as a seller platform (and incrediably HAPPY I did finally!) is the fact THEY DON'T allow any of that stupidity & thieving going on at both eBay and papal to go on there!

(And I mean that in the sense that eBay and papal are the thieves, not the buyers! Although that's happening more and more as well too due to eBay and papal basically BEGGING buyers to file bogus claims for refunds for fraudulent/lying/ANY reason)

IMHO, it would be an incredibly sad day if Amazon allowed eBay OR papal access to any portion of their site, sales, payment platform - ANYTHING WHAT SO EVER.

As the old saying goes - you're easily judged by the company you keep - Why ruin a sterling reputation by laying down with THIEVES, HACKS WHO CAN'T PROGRAM A SYSTEM CORRECTLY TO SAVE THEIR LIVES AND WHICH ARE SUCH POORLY RUN COMPANIES THAT THEY ARE 2 OF THE MOST HATED NAMES ON THE PLANET?!

PayPal: It's Everywhere You Want to Be - Except Amazon   PayPal: It's Everywhere You Want to Be - Except Amazon

This user has validated their user name. by: Tula

Thu Aug 11 07:58:11 2011

Amazon has enough technical talent of its own to implement mobile payments if it so desires. I don't think they need Paypal at all.

PayPal: It's Everywhere You Want to Be - Except Amazon   PayPal: It's Everywhere You Want to Be - Except Amazon

by: Moonwishes
Web Site

Thu Aug 11 08:18:51 2011

Since a customer can pay on Amazon with their credit cards, what would Paypal bring to the table other than another link to payments except for those that have money in their PP account, but the way that PP now regulates how people can pay for an item, first grabbing any cash and then defaulting to cards and then bank account, it is a pain to use anymore to make payments with. Amazon has been getting just fine for years now without PP and they have also paid their sellers without PP also. So no reason to use PP at Amazon. Had yet another customer asking if they could give direct cc info to me as they hate paying on line (yet somehow feel safer calling someone they don't know to give out that info?). People don't need more payment options, they need to feel safe with the ones that are available.

PayPal: It's Everywhere You Want to Be - Except Amazon   PayPal: It's Everywhere You Want to Be - Except Amazon

by: The Book of Wealth
Web Site

Thu Aug 11 09:47:57 2011

I've been using PayPal for years to buy things on Amazon.

My PayPal card number is set up as my default payment source for Amazon purchases.

Then, each month I get back 1.5% of my purchases as a PayPal dividend.

But as far as Amazon adding 'PayPal' as a payment option...

Not bloody likely!

PayPal: It's Everywhere You Want to Be - Except Amazon   PayPal: It's Everywhere You Want to Be - Except Amazon

by: Quicksilver Messenger This user has validated their user name.
Web Site

Thu Aug 11 10:46:07 2011

I would sincerely hope that Amazon would NEVER accept PayPal. I really don't think they would be that stupid. eBay & PayPal are not exactly Mr. & Ms. Popularity.

PayPal: It's Everywhere You Want to Be - Except Amazon   PayPal: It's Everywhere You Want to Be - Except Amazon

by: Money

Thu Aug 11 11:40:07 2011

@book -

Exactly. Been using my PP debit card for my Amazon buys for at least 6 years now.

PayPal: It's Everywhere You Want to Be - Except Amazon   PayPal: It's Everywhere You Want to Be - Except Amazon

by: nobody

Thu Aug 11 11:42:23 2011

Amazon wouldn't be #1 if they were stupid and if they shared my personal info with payfoul, I'd close my acct at Amazon. Amazon does better than fine without them.

I refuse to use payfoul to buy or sell.

Payfoul is a hacker's paradise and a scammer's dream come true.

Yep, it's everywhere I want it to be... nowhere I shop or sell.

PayPal: It's Everywhere You Want to Be - Except Amazon   PayPal: It's Everywhere You Want to Be - Except Amazon

by: buck efay

Thu Aug 11 14:23:05 2011

Any word yet on whether PP will lower fees once the new Federal law regarding debit transaction charges kicks in? Debit charges will be limited to .21 cents merchant fees per transaction with no percentage allowed. Does anyone think PP will discount for debit trans, as other payment providers are planning to do?

PayPal: It's Everywhere You Want to Be - Except Amazon   PayPal: It's Everywhere You Want to Be - Except Amazon

by: Eric

Fri Aug 12 04:11:15 2011

Do your homework. Paypal transacts millions per week for Amazon: soap.com, diapers.com, wag.com. Paypal is #2 payment method online behind Visa. Accepted on those sites pre-acquisition, and still there.

PayPal: It's Everywhere You Want to Be - Except Amazon   PayPal: It's Everywhere You Want to Be - Except Amazon

by: Susan

Fri Aug 12 05:24:06 2011

Amazon is not where I want Paypal to be. I love amazon paymets, it is clean and easy. I can one click buying for my kindle and music. I like amazon so much, I use it in my Artfire shop (as well as paypal). I just wish Amazon payments would go international.
No I don't want paypal mucking with a clean safe system on amazon

PayPal: It's Everywhere You Want to Be - Except Amazon   PayPal: It's Everywhere You Want to Be - Except Amazon

by: SWAZ

Fri Aug 12 06:46:23 2011

Don't forget, PayPal is "the most LOVED way to pay and get paid."!

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