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Amazon Pay vs PayPal: What are the differences?
Amazon Pay and PayPal are online payment solutions. Let's explore the key differences between them.
Transaction Fee Structure: One key difference between Amazon Pay and PayPal is their transaction fee structure. Amazon Pay charges a flat fee plus a percentage of the transaction amount, which varies depending on the volume of transactions. On the other hand, PayPal offers tiered pricing, where the fees decrease as the transaction volume increases.
Integration with E-commerce Platforms: When it comes to integration with e-commerce platforms, Amazon Pay has a more seamless integration with Amazon's own platform, making it an ideal choice for businesses selling on Amazon. In contrast, PayPal has wider integration capabilities with various e-commerce platforms like Shopify, WooCommerce, and Magento, providing businesses with more options and flexibility.
Payment Method Options: Amazon Pay primarily allows customers to pay using their Amazon account, which means shoppers can use their Amazon login credentials and saved payment methods. On the other hand, PayPal supports multiple payment methods, including credit cards, debit cards, and bank accounts, giving customers more choices during checkout.
Buyer Protection and Dispute Resolution: Both Amazon Pay and PayPal offer buyer protection and dispute resolution services, but there are some differences. PayPal has a well-established dispute resolution process and offers extended buyer protection for eligible purchases. Amazon Pay, on the other hand, relies on Amazon's existing customer service and A-to-Z Guarantee for dispute resolution and buyer protection.
International Support: PayPal has a wider global reach and supports transactions in multiple currencies, making it more suitable for international businesses and customers. Amazon Pay, however, is predominantly available in selected countries, limiting its usability for businesses operating on a global scale.
Brand Recognition and User Trust: PayPal has been around since 1998 and has gained widespread brand recognition and user trust over the years. It is widely accepted by merchants and customers worldwide. Amazon Pay, although backed by the trusted brand of Amazon, may not have the same level of recognition and trust as PayPal, especially outside of the Amazon ecosystem.
In summary, Amazon Pay streamlines transactions with Amazon account integration, catering to users familiar with the Amazon ecosystem. PayPal, a versatile platform, facilitates secure online payments for users globally, offering a broad range of payment options.
We use GoCardless to simplify the way clients and partners pay for our services. What intrigued us is the quick and easy ACH feature that gives our clients the option to log in with their bank account and shoot the funds directly to our account. The fee, compared to Stripe is less. Stripe and PayPal charge 2.9% + 30c and Stripe also forces the client to enter in all of their payment details manually and then if the payment doesn't work, the client has to try all over again. GoCardless charges 1% + 25c which is much more reasonable dealing with the large projects that we are currently working on.
We integrate GoCardless with Xero to easily send out quick invoices, receive the funds and track all revenue in one place.
Pros of Amazon Pay
Pros of PayPal
- Most known service196
- Consumers know it135
- It's available for many countries113
- Easy70
- Best way to get paid outside US54
- Most widely used payment processor35
- Express Checkout25
- Consumers trust it16
- Flexible and secure15
- Digital Goods for Express Checkout6
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Cons of Amazon Pay
Cons of PayPal
- Not well written recurring payment api1
- Less countries supported1
- Harder to get started with1