What eCommerce businesses need to know about Amazon Pay

Amazon Pay is a payment service that lets customers complete purchases on participating websites using payment, address, and account information stored in their Amazon accounts, including through Alexa-enabled transactions. Merchants can add it by creating or using an Amazon Seller account, integrating the service with their e-commerce platform, accepting its terms, configuring checkout, and testing the implementation; security is supported through tokenisation. Fees include 2.9% plus 30 cents for US online and mobile payments and 4% plus 30 cents for Alexa payments, rising by 1 percentage point for cross-border transactions, while Amazon currency conversion may cost up to 3.9%. Its advantages include access to Amazon’s widely recognised customer base, integrations with platforms such as Magento and BigCommerce, and Amazon’s A-to-Z Guarantee, while drawbacks include international fees, potentially complex seller verification and implementation, and incompatibility with some platforms. The discussion notes that offering locally preferred payment options can reduce cart abandonment and presents Airwallex as an alternative that supports more than 60 local payment methods, multi-currency collections, and lower stated foreign-exchange costs.

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