When it comes to transferring money online, PayPal is often the most recognized and widely used service online. There’s not a single payment service out there that offers the international reach, merchant services and overall ease that PayPal does. However, there are a variety of users out there that have grown disenchanted with PayPal’s Terms of Service and lack of protection for digital good sellers. launched its own payment service, Amazon Payments, in 2007 and only in the last year has it become large enough that any US-based user can utilize.

We’ll get you started with Amazon Payments so you can see how it stacks up to PayPal.


How to use Amazon Payments

Amazon Payments is available to any user based in the US. You must have a US bank account and credit card to be able to use Amazon Payments. For now, the maximum sending and receiving limits with a credit card are $1000 but this is expected to rise in the future as the service becomes more viable for Amazon. You can send and receive an unlimited amount from a bank account once your account is linked.

Head to

Click “Sign In.”


Sign in with your details. If you don’t have an account but are a US resident, you can click Create account and follow the steps.

Once you’re logged in, you’ll be introduced to Amazon Payments.


If you’ve ever used PayPal, you can see how similar the setup is to its service.

The first tab you’ll utilize is the Your Account one.

This is where you’ll have access to your balance and account activity. This is where you’ll get the basics for what’s going on with your Amazon Payments account.

You can also add funds, withdraw funds and edit your account settings from here, too.

Click on the “Send Money” tab.


Sending money is simple with Amazon Payments. The other user does need to be using Amazon Payments to send them money.

You simply enter in an e-mail address or alias, the amount, choose what type of payment, add a note and click “Continue.” If you have the balance available in your Amazon Payments account, it’ll be deducted from there. If not, it can be taken from your bank account or your credit card associated with your account with Amazon.

Now, click on the “Personal” tab.


This is where shows you just what you can do with your Payments account. You can shop at certain vendors online, you can shop at and you can obviously send and receive money. Amazon’s goal has been to partner with other retailers, such as Jockey and Car Toys, to allow you to pay with Amazon Payments.

More sellers and features will be added as Amazon Payments truly takes off. So, it’s always wise to check if you can use your Amazon Payments when you checkout.

Then, click the “Business” tab.


If you’re running an online store, on or off, you can take advantage of Amazon Payments. Amazon Payments offers a variety of services for merchants, and it’s worth checking out if you’re just starting or looking for alternative ways to accept payment.

As long as Amazon Payments is not your only payment service, it can be beneficial to any online seller. Through Amazon Payments, you can utilize Checkout and Simple Pay options. Depending on the scope of your business, Amazon Payments may offer some checkout solutions for your business.

Next, click the “Developers” tab.


Amazon has always wanted to involve developers in many of their projects to help make them better. Amazon Payments is no exception.

Finally, click “Help.”


Anything you’d ever want to know about Amazon Payments is right here at your fingertips. If you’re wanting to learn more, this is the place to do it. Amazon makes it easy to learn more about Amazon Payments by providing a thorough set of help files.

Amazon Payments functions just like PayPal, without the name or the stigma that comes with it.

Is Amazon Payments a worthy alternative to PayPal?

Amazon Payments is indeed a worthy alternative to PayPal. Once they lift the limits on users utilizing credit cards for payments, it will become a fierce competitor to PayPal. If Amazon makes it an international service, PayPal may want to watch out. If you’re looking for an alternative to PayPal or another payment method for buyers, Amazon Payments might be for you.