Why You Can’t Use Your PayPal Account on Amazon’s Checkout Page?

Amazon

Amazon has been declared the biggest marketplace in the e-commerce world. It is one platform that caters to all needs. From baby clothes to cars, you can buy everything virtually here. It started in a garage in Washington with a start-up investment of $250,000; it quickly grew into a $1,659B company in under 25 years. Currently, it is delivering in more than 45 countries and across five continents.

Amazon’s Payment Options

Following its growth, Amazon has more than 12 payment platforms. To top these, Amazon has started its payment option under the name of Amazon Wallet, which started in 2007.

PayPal

PayPal is a payment option. It started in 1999 as a Skrill money transfer option, and in 2002 it was acquired by eBay. Though eBay has five other payment platforms, PayPal is its first payment option; hence eBay depends heavily upon PayPal. The two companies split up some time ago, but eBay and PayPal accounts are still linked.

Why aren’t Amazon and PayPal Incorporated?

Both Amazon and PayPal are the best yet, surprisingly, they are not integrated. Therefore, legally, you cannot pay for your Amazon shopping through your PayPal account. The actual reasons are unknown; however, based on speculations, let us discuss the most obvious reasons.

Company Rivalry

PayPal is integrated with many other vendors, but surprisingly Amazon doesn’t allow any transaction through them. Even though PayPal is operating on its own, its partnership with eBay could be a major reason why Amazon doesn’t let consumers use their PayPal account. If a consumer pays through his or her PayPal account, the 10% commission goes into the eBay account. These two companies are competing against each other’s revenues; hence it is possible that Amazon stopped payment options through PayPal. In other words, the rivalry between the two great E-Commerce giants could be a reason.

Promoting Amazon Wallet

Let us discuss another reason why you cannot use your PayPal account legally while shopping at Amazon. Amazon launched its own payment platform by the name of Amazon Wallet in 2007. Since then, it has launched many promotions through this platform for its advertisements. They want the revenue generated by the payments to end up in their account. Hence, they promote payments through the Amazon Wallet. PayPal is a much more popular payment platform; therefore, it’s a direct Rival for Amazon Wallet. By not accepting payments through PayPal on their site, they try to encourage the customers to open an account with Amazon Wallet.

Seller Percentages

Here is yet another deductive reasoning. Amazon charges 4% through its Amazon Wallet to the seller, while PayPal charges 3%. This is an income loss that Amazon would not like to bear.

In this competitive world, each company is trying to expand and become self-sufficient. Amazon is also trying to do the same. By blocking PayPal, they are increasing their payment facility options hence increasing revenues.

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