Can You Use PayPal on Amazon?

Amazon is one of the world’s largest ecommerce platforms, and PayPal is one of the most widely used online payment systems. Naturally, many shoppers wonder whether they can use PayPal when making purchases on Amazon. Despite PayPal’s popularity, Amazon does not accept PayPal as a direct payment option. However, there are ways to work around this limitation. In this guide, we’ll explore why Amazon doesn’t accept PayPal, the alternatives you can use, and how you can still use PayPal indirectly for Amazon purchases.

1. Why Doesn’t Amazon Accept PayPal?

The reason Amazon doesn’t accept PayPal comes down to business competition. PayPal was once owned by eBay, which is a direct competitor of Amazon in the online marketplace space. Although PayPal and eBay split into separate companies in 2015, the competitive rivalry still exists. Additionally, Amazon promotes its own payment services, such as Amazon Pay and Amazon Store Cards, making it less inclined to support a third-party payment system like PayPal.

Amazon’s strategy is to keep customers within its ecosystem by encouraging them to use Amazon Pay or traditional payment methods like credit and debit cards, gift cards, and bank transfers.

2. How to Use PayPal Indirectly on Amazon

Even though Amazon doesn’t accept PayPal directly, there are a few ways you can use PayPal funds to make purchases on Amazon:

A. Purchase Amazon Gift Cards with PayPal

One of the easiest and most straightforward ways to use PayPal on Amazon is by purchasing Amazon gift cards from third-party retailers that accept PayPal. Many online stores, such as PayPal’s own gift card store, offer Amazon gift cards that you can buy using your PayPal account.

Once you’ve purchased the gift card, simply redeem it on Amazon by entering the code into your Amazon account. This allows you to use your PayPal funds indirectly to make purchases on Amazon.

How to Redeem an Amazon Gift Card:

1. Log into your Amazon account.

2. Go to "Your Account" and click on "Gift cards".

3. Select "Redeem a Gift Card" and enter the code.

4. The gift card balance will be added to your Amazon account, and you can use it at checkout.

B. Use PayPal’s Debit or Credit Card

If you have a PayPal Cash Card or PayPal Business Debit Mastercard, you can use these cards just like a regular debit or credit card when shopping on Amazon. These cards are linked to your PayPal account, allowing you to spend your PayPal balance anywhere that accepts Mastercard, including Amazon.

To use your PayPal debit or credit card:

1. Add the card as a payment method in your Amazon account.

2. During checkout, select the PayPal card just as you would with any other debit or credit card.

C. Transfer PayPal Funds to a Linked Bank Account

Another option is to transfer your PayPal funds to your linked bank account. Once the funds are available in your bank account, you can use your bank’s debit card or bank transfer to make purchases on Amazon. This method takes a little longer, as transfers between PayPal and your bank account can take a few business days, but it’s a viable workaround if you prefer to use your PayPal balance.

3. Amazon Pay vs. PayPal

If you're familiar with PayPal, you might wonder how Amazon’s own payment service, Amazon Pay, compares. While PayPal allows you to make purchases on millions of websites outside of Amazon, Amazon Pay is more limited in scope but highly integrated with Amazon’s ecosystem.

Amazon Pay:

• Allows you to use payment methods stored in your Amazon account to make purchases on other websites.

• Works with millions of online retailers outside of Amazon’s platform.

• Offers secure transactions with the benefit of Amazon’s well-established security protocols.

In contrast, PayPal offers broader versatility because it can be used on more websites across various industries, and users have access to additional services like PayPal Buyer Protection, PayPal Credit, and the ability to send and receive money globally.

4. Pros and Cons of Using PayPal Indirectly on Amazon

While it’s possible to use PayPal for Amazon purchases through indirect methods, each option has its own set of pros and cons:

Pros:

• Flexibility: You can still use your PayPal funds to make purchases on Amazon, especially if you don’t want to use a traditional bank account or credit card.

• Gift Cards: Buying Amazon gift cards with PayPal is fast and allows for instant purchasing power once the card is redeemed.

• PayPal Debit/Credit Card: If you already have a PayPal debit or credit card, this method allows for seamless transactions on Amazon, without the need for extra steps.

Cons:

• Extra Steps: Purchasing gift cards or transferring funds adds an extra step in the buying process, which might not be ideal for customers looking for a quick checkout experience.

• No Direct PayPal Integration: The lack of direct PayPal acceptance on Amazon can be inconvenient for customers who are accustomed to using PayPal for most of their online shopping.

• Limited Protection: When using indirect methods like gift cards, you lose the PayPal Buyer Protection that would normally apply if you were making purchases directly with PayPal.

5. Will Amazon Ever Accept PayPal?

There’s no indication that Amazon plans to accept PayPal as a payment method anytime soon. Given that Amazon prefers to promote its own payment services and maintain control over customer payment options, it’s unlikely that the two companies will collaborate in the near future. For now, the indirect methods mentioned above remain the best way to use PayPal for purchases on Amazon.

Conclusion

While Amazon doesn’t accept PayPal as a direct payment method, you can still use PayPal funds indirectly through gift cards, PayPal debit or credit cards, or by transferring funds to your bank account. Although this adds a few extra steps to the process, it’s a viable solution for those who prefer to use PayPal for their online shopping. Until Amazon decides to integrate PayPal into its payment system, these workarounds are the best options for leveraging your PayPal balance when shopping on Amazon.