Are Amazon and PayPal Working out a Partnership?

Howdy !

Would you date your arch-rival’s ex — former corporate partner, that is?

The idea doesn’t seem to bother Amazon who is reportedly in talks with PayPal for a possible partnership.

According to information we’ve gathered, Amazon is looking to allow its customers to pay for their purchases through PayPal, but the eCommerce giant has neither confirmed nor denied this.

On the other hand, PayPal CEO Dan Schulman shared that both companies are currently discussing how to use one another’s assets to benefit their customers.

“We have been in conversations with Amazon. We’re closing in on 200 million users on our platform right now. At that scale, it’s hard for any retailer to think about not accepting PayPal,” he said.  

If that’s really the case, then it looks like Amazon’s going to end up eating its words.

Back in the first quarter of 2016, the eCommerce giant, through Patrick Gauthier, vice president of Amazon Payments, brushed off the idea of a partnership with PayPal who had just split with eBay.


What will They Gain out of it?

The Amazon marketplace may have its own payment methods in place, but it just might find PayPal’s other assets too interesting to ignore, especially in the mobile side of eCommerce.

PayPal’s mobile payment services Venmo and One Touch could be beneficial to Amazon, considering that millions of its customers shop on their mobile devices.

And if Schulman’s prediction that digital payments will be largely mobile in five years’ time proves to be correct, Amazon will definitely want to have the most reliable payment system which works on all types of mobile devices.  

As for PayPal, who has been eyeing potential partners in the retail industry, a partnership with Amazon will be a catalyst for revenue growth; plus, it will have access to merchants worldwide.

Also, the said partnership shall give the payment company an ability to add more features and flexibility to its products.  

For now, let’s wait and see where Amazon and PayPal’s discussions lead to over the course of time.  

From your own perspective as a seller, do you think an Amazon-PayPal partnership will benefit your business?

I actually recorded a video over on YouTube discussing this exact situation which you can watch here:

Let us know your thoughts on this in the comments below.

As always, to your continued success,

Dave & Matt



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