Amazon Payments – The new PayPal Alternative from Amazon

Karl L. Gechlik 09-08-2008

Amazon Payments - The new PayPal Alternative from Amazon amazon1


Amazon has entered the ring of online payment services which will compete directly with PayPal and Google Checkout.

Amazon’s new service is called Amazon Checkout. Surprised? I’m not! Big companies do well keeping things simple. That old KISS principal:)

I logged on and signed up. The process was pretty painless and very similar to that of PayPal and Google. The whole email, bank and cell phone verification aid in proving to the Amazon Overlords you are who you say you are. If you are familiar with the other services mentioned you have jumped through these hoops before.

You can send and request money, add additional funding sources. There is nothing here that really jumps up at you and makes you go WOW. But it does appear to be a solid service and a great alternative to PayPal and Google.

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What sets this service apart from the others is when choosing to integrate it into your website you automagically gain the ability to use your customers saved data for easier processing and one click purchases will help potential buyers buy even quicker.

Amazon has built up a successful reputation and people trust them so this may encourage people to buy more.

Amazon Payments

Sure this is great for merchants – it gives people looking to spend money another option. But I hear you saying:


“What does it do for me, Joe User?”

It gives you another option as well. Options bring competition which spawn discounts and reward programs. So you should be happy even if you aren’t planning on using it.

According to this excerpt from a TimesOnline article PayPal still rules supreme… But for how long?

PayPal remains by far the most popular payment service, but does not offer one-click purchase. Online retailers using the system will typically display a ‘buy now’ button which, when clicked, takes the customer to a PayPal site where he or she has to enter a user name and password. Amazon’s service promises to allow other retailers to sell goods with one click.

Check out this screen shot of my Account – does it look surprisingly similar to payPal?


Don’t pay attention to my $0 balance as my MakeUseOf expense account didn’t allow for me to make any purchases.

Amazon Payments - The new PayPal Alternative from Amazon amazonpayments

I used Google Checkout when it came out – briefly… Do you know why? Well I got 10% off my first order! That was a good enough reason to sign up but I haven’t been back around there in a while.

What do you use for online payments? Let us know and why – in the comments!


(By) Karl L. Gechlik is a superhero of the IT industry who wears many hats and changes in telephone booths. Karl mostly uses his powers for good and the occasional hysterical prank. Get your geek on & follow his geeky antics at NEW today.

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  1. John
    February 8, 2010 at 10:26 am

    I hope it will be a real alternative to PayPal

  2. cyberdude
    January 11, 2010 at 3:14 am

    The post is really great But is their a possibility to transfer giftcertificate or amazon account balance to paypal.

  3. Yudi
    September 13, 2009 at 6:57 am

    Paypal is part of eBay enterprise. I stopped using eBay after having no less than 3 bad experiences w<ith them and with PayPal. I encountered 3 different sellers that sold me defective electronics (1 from the US, 1 from Hong-Kong, 1 from China). The point is that when I asked for help from PayPal, they didn't want to do anything. I had emails from 2 of the sellers saying they are willing to return the money, but the money never returned. But when I talked with eBay, they didn't want to do anything - not even writing an email to these guys!
    SO since then I do not use PayPal or eBay - I jst don't want to lose money.
    Also, after browsing the Net regarding PayPal I see there are so many problems and dangers with their system, and that they do not have answers for these breaches, that it is best for me to stay away from them.

    I'm very happy to discover Amazon has an alternative and I'm sure it is a better one. I will subscribe today, and on the same time cancel my PayPal account.

  4. david jones
    May 20, 2009 at 7:00 am

    Great article !


  5. TFO
    May 13, 2009 at 10:28 pm

    Amazon Payments does not disburse customers funds. They let you create the account, then they collect funds from your customers and then they KEEP YOUR CUSTOMERS MONEY. They do not let you withdraw funds. All of your customers money WILL be kept by Amazon. If you are sceptical, please research this service online before opening an account. They took me for $1500+. I have been in business online for over 10 years and I have never seen anything like this. Check out all of the complaints about people who have been ripped off on sites such as If anyone is considering a class-action law suit please contact me at

  6. Wendy Peek
    December 14, 2008 at 11:19 am

    I admit that if there were a support group just for people like me that has become addicted to, I would have to attend every day!!

    I just have one question on this new service from Amazon. Can you, or will you be able to, transfer your money from PayPal to Amazon Checkout? Or is it simply a place to store money until you choose to buy something?

    Wendy Peek ~ Dallas, Texas

  7. Ruben M
    August 26, 2008 at 4:17 am

    One alternative that is beginning to gain wide acceptance is Mobillcash. It allows over 500 million mobile phone users in 15 countries including the US and Europe to simply enter their mobile phone number in the MobillCash billing form and purchase products or services. Mobillcash is approved by over 100 Mobile Phone Carriers like AT&T, Vodafone and Sprint/Nextel. Is being used by®, Facebook®, eBay® and other social networking sites.

    • Bob
      August 27, 2008 at 10:30 am

      Probably the largest player in the mobile billing space is from Zong (, which comes from longtime mobile services provider Echovox. Zong has greater geographic coverage and easier technical integration than Mobillcash or any others in the premium SMS / mobile billing space.

      • David
        September 2, 2008 at 1:36 pm

        Yes, if Zong could do what Mobillcash can do it would be an equal comparison, but it can't. We evaluated both head to head and there it was obvious after a few minutes.

        Mobillcash is more flexible, offers an easier to use solution for consumers, protects ID better and simply makes more sense for the long run.

  8. Ellie Harrison
    August 10, 2008 at 6:59 pm

    Interesting. I am a bit frustrated with Amazon, though, because I cannot get gift card payments for sales in my Amazon store anymore :-( They decided to only do direct deposit to accounts; maybe I can figure out how to get my payments in this account, and keep buying from!

  9. Steve G.
    August 10, 2008 at 6:42 am

    Great post! Thanks for the notification of a new service. One feature they could add is the use of the mobile phone to send a one-time use 4 or 6 digit validation number. This would increase the security and irrefutability of online transactions.

    The point that was missing in the comparison between Amazon and Paypal was that Paypal's system is so closely tied into DoubleClick that you can't get their services without allowing doubleclick cookies. Too intrusive!