Why Doesn't Amazon Accept PayPal? (A Complete Guide)

why doesn't amazon accept paypal

PayPal offers one of the most convenient and secure ways to pay through our mobile devices.

Whether you're looking to pay for a cinema ticket or your grocery shopping, you'll typically find PayPal as a payment method at most stores not just online but in stores.

Amazon is one of the leading giants in the e-commerce sector and is known as one of the stores that accepts a wide variety of payment methods. But why doesn't this giant accept PayPal as a payment method?

That's what we'll be seeing today. So grab a cup of coffee and sit tight as we dive deeper into the topic.

Why Doesn't Amazon Accept PayPal?

There's no doubt that Amazon and PayPal are two leading giants in the e-commerce space with each leading as what it is—that is, Amazon as a retail giant and PayPal as a payment giant.

It is clear that there's no need for these two companies to compete with each other since what they primarily offer doesn't relate to each other's competition.

And you can agree with me that shopping at Amazon would even be more convenient if Amazon offered PayPal as a payment method. It is very easy for them to establish this partnership—but the truth is, they won't do so anytime soon.

Wondering why? Well, to better understand, you'll need to understand both the histories of Amazon and PayPal. Well, I'm not asking you to go read novels. I've broken down the essential parts you need to understand.

Everything started back in the year 2002, when eBay, another leading retailer in the market, purchased PayPal just the same year that PayPal received its initial public offering.

This eBay acquisition brought PayPal into an indirect competition with Amazon since eBay customers could benefit from all the perks offered by PayPal and it was from there that PayPal started getting its fame in the market.

As PayPal continued expanding its reach as a subsidiary of eBay, Amazon was preparing to release a solution that would directly challenge PayPal, which resulted in Amazon Pay's launch back in 2007.

Since Amazon Pay was released, it has been in tough competition with PayPal among those looking to make convenient payments. And that is why even since eBay parted ways with PayPal back in 2015, Amazon still considers PayPal as a rival because this time it competes with its own payment service.

So simply put, the main reason why Amazon doesn't accept PayPal is because the retail giant offers its own payment service, Amazon Pay that offers almost the same benefits as PayPal when making payments online.

How to Use PayPal on Amazon

Amazon doesn't accept PayPal directly, that's a fact—but there's still a way to make payments on Amazon using your PayPal balance.

According to PayPal, you should be able to make payments on Amazon if you are a PayPal Debit Card or PayPal Business Debit Mastercard holder (for personal and business accounts respectively).

These cards are linked to your PayPal account balance and each time you use it to make a purchase on Amazon, the purchase amount will be debited from the account to which the card is linked.

Amazon and PayPal: A Future Partnership?

There's no clear statement of a possible partnership between these two companies in the future as of this writing since each focuses on expanding on its own.

However, there's been some gossip about a future partnership on social media, and even though this isn't confirmed yet, just keep your fingers crossed and hope for a future collaboration between the two giants.

Final Thoughts

Amazon doesn't accept PayPal.

If you look at the present situation, you won't understand why doesn't Amazon accept PayPal—but if you take a dive into their history, you'll better understand why the two giants don't collaborate right now.

However, to break the whole story short, Amazon doesn't accept PayPal not only because of the historical competition but also because of its subsidiary's (Amazon Pay) direct competition with PayPal.

This doesn't mean you can't use PayPal on Amazon—if you have a PayPal debit card or PayPal business debit Mastercard, you should be able to use your PayPal balance indirectly for payments on Amazon through these cards.