Amazon has officially integrated PayPal as a payment option within its “Buy with Prime” program, allowing Prime members to use their preferred payment method when shopping on participating third-party websites.
Expanding Payment Flexibility
Amazon announced on Wednesday that this integration allows Prime customers to complete purchases on external sites using the Buy with Prime API. Furthermore, the company revealed that starting next year, users will be able to link their Amazon and PayPal accounts, ensuring that Prime shipping and delivery benefits are automatically applied whenever they checkout with PayPal.
The Evolution of Buy with Prime
Since its debut in April 2022, Buy with Prime has functioned as an end-to-end e-commerce solution. Merchants utilizing the service delegate their fulfillment operations to Amazon, which requires brands to maintain inventory within Amazon’s warehouse network. Rather than acting as a direct competitor to payment gateways like Apple Pay or Shop Pay, the service positions itself as a comprehensive checkout experience integrated directly into the merchant’s site.
Market Performance and Growth
Amazon reports significant momentum for the program, citing the addition of major brands such as Dollar Shave Club and IZOD. According to the company, Buy with Prime order volume has surged 45% year-over-year, with a 50% increase in the number of Prime members utilizing the service compared to the same period last year.
Industry Skepticism and Challenges
Despite Amazon’s optimistic growth figures, some industry analysts argue that the service remains a niche offering. Juozas Kaziukėnas of Marketplace Pulse notes that the mandatory requirement for brands to store inventory in Amazon warehouses creates a significant barrier to entry. This friction led platforms like Shopify to previously discourage merchants from adopting the integration.
New Features and Shopify Integration
Alongside the PayPal integration, Amazon introduced additional updates to the Buy with Prime ecosystem. These include the deployment of real-time delivery estimates within TikTok advertisements for participating merchants and a streamlined checkout process for Shopify stores, which now allows customers to purchase items both with and without Prime benefits in a single transaction.
