Amazon Company launched its Payments Partner Program on Monday – a global effort widely seen as a rival to the PayPal – in the United States, the UK, Germany, and Japan.
Currently available by invitation only, the program provides for only three levels of partners – premier partners, certified partners and certified developers. The first two are for E-commerce platform providers, and the third is for the developers and agencies.
Shopify, Future Shop & PrestaShop are among the companies that have signed up for the program. other integrations include Chargebee, Magento, AmericanEagle.com, Rand Marketing, WooCommerce, UltraCart, Volusion, and Zoey.
Spreading Benefits all around
‘One of the draws of the program for merchants is that so many shoppers already have a payment information registered with Amazon Company,” noted Tom CEO of Clarus Commerce Caporaso. “
Adding an Amazon payment button should offer millions of the consumers a quick, seamless transaction process.’
The program will be the particularly valuable to small & midsize merchants that do not have much brand recognition, he told the E-Commerce Times.
They will get “a reflected glow of trust” as well as the possibly, an easy checkout process, joint marketing opportunities, & “Amazon’s behind-the-screen expertise and constant improvement process will help ensure that system flows smoothly,” Caporaso said.
Customers will benefit from the ease and convenience of checkout process & will “likely feel a bit more confident with making purchases at Amazon-certified merchants,” he suggested, as Amazon “is one of the, if not the, most trusted retailers in the U.S.”
Payment volume from Pay with Amazon grew more than 150% year over year in 2015, Amazon said in its Q 4 2015 financial report.
Too Much Information?
“Obviously, Amazon’s going after the PayPal,” observed Andreas Scherer, managing partner at the Salto Partners. “By providing perhaps, convenience & aggressive terms on its payment service, it would be well positioned to the grow.”
However, retailers “have to think long & hard before they reveal their client data to the another retailer, let alone the world’s largest retail E-commerce site,” told the E-Commerce Times. “Via this services, Amazon learns what people buy, who they are, and what they paid for the particular item.” Information of that type is a “very valuable to have in a hyper-competitive industry.”
Retailers who go with PayPal “won’t have to fear any conflict of interest now and in the foreseeable future,” Scherer said. “That’s the biggest hurdle for Amazon to clear.”
Amazon’s huge subscriber base “is one of the biggest selling points of a program for merchants,” Clarus Commerce’s Caporaso is noted. “If the Amazon certifies a merchant, shoppers will be the more likely to make payments with Payments Partner’s Program participants than they might be with non-participating stores.”
That gives the Amazon’s program a running start, he pointed out. “If you are an Amazon customer and you can see an Amazon the payment button at the every retailer you visit, you are less likely to want or need to sign up with the PayPal.”
Partners at all three levels will get the integration support & certification review. They also will be allowed to use the logo Amazon provides to designates their status in partner program on their websites. The logo could be used in promotions & on third-party websites with Amazon’s approval.
Premier partners will get instructor-led tech training on the features and functioning of Amazon products at the company’s discretion; certified partners and certified developers will get only written and video materials.
Premier partners will be given early access to any new features adopted; the others will get access as available. Premier partners also will be given preferred placement on Amazon’s Partner web page.
The Everything Business
Payment processing is a huge potential growth area,” Caporaso said. Amazon “is trying to become everything business, and this will go a long way toward helping it reach that goal if it does it right.”
Amazon already serves more than 200,000 businesses, the company’s Q4 financial report stated, ranging from Fortune 500 corporations to SMBs with Amazon Business.