Transaction Volume Of Amazon Payments Surged Significantly In 2015

The volume of the transactions on Amazon's platform have increased in recent times.

Amazon has grown in the payment service industry. The transaction volume of Amazon Payments has surged past year, which indicates that the payment service of the American e-commerce company has ultimately started to gain after it incepted almost 8 years ago. The service provides an opportunity to customers to employ their accounts pay for goods found on the website of any other retailer.

Customers log in to their accounts on the largest online retailer’s website (Amazon) to shop, avoiding the need to enter their credit card or ship details. The volume of payments through its “Pay with Amazon” facility on the sites of other retailers grew by 150% past year from the year earlier, the company stated Tuesday. The order’s average size was $84 during the same period.

Amazon did not disclose cumulative value of the sales or the rest of financial information. Its payment service is a competitor of Samsung Pay, Apple Pay, and Paypal Holdings. It began in 2013 after many unsuccessful attempts by the online business that date back to 2008 for getting its payments business off the ground.

“Pay with Amazon” is capable of representing a huge revenue source for the company if it succeeds in multiplying its success with Amazon Marketplace, which allows independent merchants to compete with the Seattle-based giant on its own site.

Amazon Marketplace is now contributing over than 40% of the total revenue earned by the organization. E-payment checkout facilities available on websites of some retailers comfort the payment procedure for consumers. They also provide a chunk of every transaction to the payment platform that takes place online.

The ecommerce business charges fees to merchants for every transaction, which amounts to 2.9% of the value of the order plus 30 cents. It stated the number of sellers using its payment service increased by 200% in the last year, but did not disclose the total number of sellers involved. The company has earlier stated that it is aiming at smaller and middle size enterprises.

The draw for these small sized retailers is the 285 million account holders of Amazon, whom they expect would purchase on their webpages. Referring to a study conducted by analytics firm ‘ComScore’, the company stated 60% users of its payment service earn an income over $100,000. It also told that over 23 million customers have used the service at Non-Amazon sellers in the past two years.

The payment service is offered in 170 states including the EU member countries and Japan.