If you find yourself looking for that familiar PayPal logo on Amazon.com, you are not alone. The unfortunate reality is that Amazon does not accept PayPal. That’s right, it is 2020 and the largest online retailer does not accept payments through the largest online payment processor.
Why doesn’t Amazon accept PayPal?
Amazon does not accept PayPal because it would hurt their competitive position. You may have noticed that Amazon tends to get involved in just about every industry imaginable. Not surprisingly, Amazon entered the online payments processing space in 2007 with the launch of Amazon Pay.
Amazon Pay allows you to use a payment method stored in your Amazon account, such as a credit card or bank account, at other online stores. If this sounds familiar, it should; at a basic level, PayPal’s value proposition is exactly the same.
So what’s the problem? Well, if Amazon accepted PayPal, they would have to pay a massive amount of transaction fees each year to the largest competitor of their own payments processing product. If that isn’t bad enough already, customers would be less likely to add any payment methods other than PayPal to their Amazon accounts, and a user without a payment method that is usable in Amazon Pay is much harder to convert to an Amazon Pay user.
One more important piece to note: PayPal and eBay have a very tight-knit relationship. Until 2015 when it became its own publicly traded company, PayPal was a wholly owned subsidiary of eBay. Despite the separation, PayPal is still a prominently featured payment method on eBay. And guess who eBay’s biggest competitor is… that’s right, Amazon.com. Just another reason for Amazon to stay away.
How do I use PayPal on Amazon?There are still ways to use PayPal on Amazon even though Amazon does not accept PayPal directly. The easiest method would be to buy an Amazon.com eGift Card with your PayPal account, but there are no websites that currently offer that. Check out the options below to use PayPal on Amazon.
Buy an Amazon.com Gift Card with PayPal (unavailable)While this option is currently unavailable, you can still use PayPal at many other retailers that also do not accept PayPal. Browse the hundreds of gift cards that you can buy with PayPal and receive by email in just minutes. We will update this section if Amazon.com Gift Cards do become available with PayPal.
Get a PayPal Business Debit MasterCardThe PayPal Business Debit MasterCard is a card that pulls directly from your PayPal balance or a backup bank account. You need to have a business account and go through some verification to receive the card, but once you have it, you can use it as a debit or credit card on Amazon.
- Speed: 2-4 weeks for initial setup, instant thereafter
- Requirements: PayPal business account
- Fees: none
Transfer to your Bank AccountLinking a bank account to your PayPal account allows you to transfer your PayPal balance to your bank account. Once the funds are in your bank account, you can use your bank account or debit card as payment on Amazon.
- Speed: 1-3 business days for free, instant for a fee
- Requirements: bank account
- PayPal fee: free for standard transfer, 1% fee for instant transfer
- Bank fee: some banks charge fees for electronic transfers