Momentum for Amazon’s payments service Login and Pay With Amazon appears to be building after a sluggish start.
In January, Amazon reported strong growth in the service among mobile users last year,
with more than a quarter of such payments made with a mobile device while orders processed by businesses using Login and Pay With Amazon during the holiday season more than tripled from the year before.
Mercator Advisory Group’s Tim Sloane says Amazon uses the service to fuel its other businesses, and connecting online shoppers from checkout to delivery via Amazon prompts third-party merchants to let Amazon manage every aspect of their online sales.
In its January disclosure, Amazon reported a nearly two-thirds increase in the number of sellers using Fulfillment by Amazon, suggesting Login and Pay With Amazon may be driving the trend.
“Amazon is trying to become a warehouse and infrastructure that other e-commerce sites use for fulfillment and inventory,” Sloane says. He also reports Amazon is trouncing Apple in persuading customers to use touch payment buttons at website checkouts, while small retailers can process store-based payments with smartphones and tablets using the Amazon Local Register point-of-sale payments service.
Meanwhile, ChannelAdvisor CEO Scot Wingo says smaller businesses, especially those outside of retail, could benefit from Pay With Amazon due to the competitive factor.