Long gone are the days when people preferred cash-on-delivery. With an array of advantages that digital payment solutions bring to the table, people didn’t need to think before making the switch.
Amazon Pay is a proprietary digital payment solution that is already aligned with your Amazon account and can be integrated with other online stores and Alexa-enabled devices. You no longer need to enter your card details for every purchase.
In this article, we will learn more about Amazon Pay, including its key features, benefits, and how it differs from its counterparts, and so on.
What is Amazon Pay?
Amazon Pay is a digital payment method that allows you to use already set up payment methods within your Amazon account for purchases.
Unlike PayPal and Venmo, Amazon’s Payment service does not require you to create a separate wallet account to use the digital payment system. Whenever you need to make a payment, it directly pulls from the linked credit card or debit card.
Amazon Pay doesn’t restrict itself to your Amazon account but can also be easily integrated with third-party websites and stores. By clicking on the Amazon Pay button, it helps you complete the purchase with the linked payment accounts and addresses. This facilitates numerous advantages, which will be explored in the following sections.
Key Features of Amazon Pay
One-Click Checkout
All you have to do is click on the Amazon Pay button from the payment options, and it directly draws money from the linked payment account and makes the purchase. This helps in eliminating the friction that is usually found during making purchases and reduces the chances of cart abandonment.
Integration with Alexa
Amazon Pay effortlessly integrates with Alexa-enabled devices and which makes it easier to make payments and purchases with just your voice. This hands-free facility helps in easily following up with recurring payments.
Recurring Payments and Subscriptions
Most streaming platforms and online course providers offer Amazon’s Payment service as a payment option. Once you authorize Amazon Pay, it takes care of the recurring charges and pays them with your preferred card.
Security
The same fraud detection technology used by Amazon.com is used here as well. The actual card details are not shared with the merchants as Amazon Pay covers them as an intermediary. Also, no liability will be on the customers if there’s an unauthorized charge on the payment mode made via Amazon Pay.
Charity Contributions
Amazon Pay helps in making direct donations to charity instantly. Popular organizations like the American Red Cross, UNICEF, and St. Jude Children’s Research Hospital accept donations through Amazon Pay, making philanthropy more seamless.
Where can you use Amazon Pay?
- Ecommerce Businesses
- Alexa-enabled services
- Non-Profits and Charities
- Auto-Pay payments like subscriptions, expense bills, etc.
- Businesses like Jeffree Star Cosmetics, Vera Bradley, etc.
Reasons to choose Amazon Pay as your WooCommerce Payment Gateway
Let’s roll.
Trust
Amazon has more than 300 million users, which they have gained because of continued trust from their consumers. A user visits your store, likes your product, adds the product to the cart, and proceeds to purchase. This is a critical point of conversion that should be handled carefully.
If you are a small business owner with an unrecognized branding, it becomes difficult to capture sales from buyers who are hesitant to enter their card information; hence, you can leverage the trust that has been built in the Amazon brand by using Amazon Pay as your payment method.
Brand
As we know, customers’ trust is easily lost and hard to regain. Hence, continued trust leads to the brand building.
Amazon is a brand in itself and has millions of customers all over the world. The conversion is bound to happen when you tap into those millions of existing customers who trust the Amazon brand. When users see Amazon Pay as a payment method on your WooCommerce store, it increases their confidence and encourages new customers to buy on your site and possibly return to buy again.
Mobile Responsive
Today, more than 50% of the online audience uses their mobile devices for online shopping. Hence, having a payment gateway that is mobile responsive should be one of your top goals for conversion (not to mention that your WooCommerce store needs to be mobile responsive as well).
Amazon Pay is developed as a finger-tap technology that focuses heavily on customer experience by making the checkout completely mobile responsive. This will not clutter your store’s Checkout process and will provide smoother order transactions.
Fewer Clicks, Higher conversions
When customers select Amazon Pay as their desired payment method on your store, they don’t have the overhead of entering their credit/debit card information; instead, they just need to enter their Amazon login credentials. This will not only streamline the payment but also access the shipping address from your Amazon account. This saves your customers’ time for entering the shipping/billing address, which avoids cart abandonment.
When the payment process is simple enough, the customers will feel confident enough to make an additional purchase or come back again in the future. Even a proper word-of-mouth of your online store will result in more customers, leading to a higher conversion rate.
Inline Checkout
Customers get annoyed when they are redirected to another site to make payments. This affects the whole customer shopping experience of your site and might even lead to cart abandonment.
Amazon solves this problem by providing in-line checkout, which means your customers do not have to leave your site to make a payment. When the customers select the Amazon payment method, a pop-up window appears, where they need to enter their Amazon login credentials (email and password). Once the login is successful, the pop-up window is closed automatically, and the customers’ information is retrieved. This will, in turn, give your customers a feeling of one complete shopping transaction experience.
Security
With great power comes great responsibility, and the security of the customer’s data is your responsibility. Amazon’s data scientists work hard to ensure the user information is protected from fraudulent activities. But before you use the Amazon Payment API or plugin, you should get a Transfer Security Layer (TLS)/Secure Socket Layer (SSL) certificate for your website. If you don’t have one, contact your web hosting provider.
Amazon’s technological strength is one of the key attractions for the merchants. Security is central to everything that Amazon has developed and is a top priority when it comes to handling payment transactions.
Convenience
Customers do not have to dig out their credit or debit cards when they have to make a purchase. All they need to do is log in to their Amazon account for the immediate checkout facility. This process will not only fetch the payment details but also the shipping address for moving ahead with the checkout process. This is one of the few advantages that Amazon has over other payment gateways.
Charges
There is no monthly or yearly fee on Amazon. All charges are transaction-based. The transaction charges include 2.9% as a Domestic processing fee and $0.30 as an Authorization fee. This fee will also include taxes wherever applicable, charged when the purchase is authorized and processed successfully.
For cross-border purchases, the processing fee includes 3.9% as a cross-border processing fee (which is charged only when the transaction is captured) and $0.30 as an Authorization fee, plus tax wherever applicable. Both domestic as well as cross-border processing fees are refundable, unlike the Authorization fee. This fee is fairly nominal when compared to other payment gateways. Read the Amazon Fees document for more information.
ELEX WooCommerce Amazon Pay Plugin
To make the integration easier with your WooCommerce store, you can use the ELEX WooCommerce Amazon Pay Plugin.
Key Features:
- Add Amazon Payment to the Cart and Checkout page
- Helps process full and partial refunds
- A lot of Customization Options
- Dedicated Amazon Payment Overview Page
Conclusion
Amazon Pay is a convenient and rewarding payment option for businesses. Integrating and using Amazon Pay is one step closer to providing your customers with a hassle-free shopping experience.
FAQs
- Does Amazon Pay help build trust with customers?
Yes. Since buyers already trust Amazon, seeing Amazon Pay at checkout increases their confidence in completing purchases on your store. - How are refunds handled with Amazon Pay?
Refunds are processed directly back to the customer’s original payment method (credit/debit card or bank account). - Are there any setup or monthly fees for Amazon Pay?
No. Amazon Pay charges a fee per transaction—2.9% + $0.30 for domestic transactions and 3.9% + $0.30 for international transactions. - Does Amazon Pay work on mobile devices?
Yes. Amazon Pay is mobile-responsive and designed for smooth one-tap checkout experiences. - Do customers need to re-enter shipping and payment details?
No. Amazon Pay automatically pulls this information from the customer’s Amazon account, reducing checkout steps.
