Amazon’s payment business nearly doubled the volume of cash it processed in 2016 on the back of expanding into new markets and new verticals.
A Paypal rival, Pay with Amazon lets shoppers make purchases on other websites with payment and shipping information already stored in their Amazon account.
The company said 33 million customers have used Amazon Payments to make a purchase, more than 50 per cent of those shoppers customers are Prime Members. For context, market leader PayPal had 197 million active customer accounts in 2016.
Amazon didn’t declare how much money it processed in the year or the total number of transactions. However it did reveal the average Pay with Amazon purchase was $80 in 2016, with the largest single transaction being $40,000. Payment volume peaked on Cyber Monday, November 28, 2016.
Amazon takes a 2.9 per cent cut of US transactions, plus a $0.30 authorisation fee.
In 2016, Pay with Amazon launched in France, Italy and Spain and expanded into new verticals including government payments, travel, digital goods, insurance, entertainment, non-profits and charities. Amazon Payments also introduced new in-store payments with Moda Operandi and Amazon Books.
“As we have introduced new experiences with merchants, we have seen a significant increase in the number of customers using the information from their Amazon account to make purchases on merchant websites,” said Patrick Gauthier, vice president, Amazon Payments.
“Amazon Payments brings the simplicity and familiarity of Amazon’s buying experience to our merchant customers, making it easy for millions of Amazon customers around the world to pay using the information already stored in their Amazon account.”
Customers from more than 170 countries used Pay with Amazon to make a purchase in 2016. The company said 32 per cent of transactions using Pay with Amazon were made on a mobile device.
Global spend via mobile wallets is expected to rise by nearly 32 per cent this year to $1.35 trillion, according to Juniper Research.