How To Use PayPal on Amazon In 2020 (Step by Step)

Written by Franklin Hatchett

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Our goal at EcomElites is to help readers get the information they need, we partner with companies to help bring you that information. If a purchase or signup is made through our partners, we receive compensation for the referral. Learn More

While both PayPal and Amazon are American companies, there really is no partnership between the two of them. Recently, there were talks between the companies to work together, but these talks have been going on for years.

Amazon is the world’s second biggest online retailer next only to Jack Ma’s Alibaba. PayPal, on the other hand, is also the second biggest online payment processor in the world, next to AliPay. AliPay is owned by Alibaba also.

 

Worldwide, these two brands are the most iconic names in their respective industries, despite only second to Alibaba. The only reason Alibaba is number one is because it is a Chinese company, and China has more than a billion people in population.

Amazon currently uses its own payment processing system called Amazon Payments. The issue with this is that it is not as flexible as PayPal. The entire world uses PayPal, and a customer would rather sign-up for PayPal than Amazon Payments.

So, can you use PayPal on Amazon? If so, how? And if not, are there alternatives? Today, we will find out the answers to these questions, and give you accurate information so you do not get scammed.

Can you use PayPal on Amazon?

The sad but true answer is No. Amazon and PayPal have no business relationship as of now. With Amazon Payments, the Amazon Company is earning money for the payment service, on top of the fees they charge the sellers.

As you can see, Amazon is not in a hurry to use PayPal as a payment partner. It has not accepted PayPal for years, and yet it has been a billion-dollar company for so long. If it survived without PayPal before, then it can certainly survive for more years without PayPal.

If you think about it, why would Amazon want to lose that revenue if it starts accepting PayPal? Once Amazon starts taking PayPal payments, it is not likely that people would stick to Amazon Payments. Instead, a vast majority of shoppers and sellers are going to use PayPal, and this means the end of Amazon Payments.

Anyone who claims that they can process PayPal payments on the Amazon system is shady, to say the least. These people are going to scam you.

So, we just need to repeat this for your own safety: you cannot use PayPal to pay on the Amazon universe. If there is anybody who claims that he can do it for you, it is a scam.

What are the alternatives to Amazon if you cannot use PayPal?

There is a reason why people do not like to use Amazon payments. You see, all these different accounts with different passwords can be confusing. Because of this, many people would rather prefer that they only have one payment processor, which is PayPal.

Or, they just have to manually type their card details every time they buy something on Amazon. It is much more secure that way than exposing yourself to hacking if you have so many financial accounts.

If you do not want to use Amazon Payments or PayPal, you can still shop on the Amazon platform and use other payment methods. Amazon does not use Amazon Payments exclusively, so you have a choice.

Below is a list of the types of payment methods you can use:

  • Credit and debit cards
  • Checking accounts from US banks
  • Amazon Store and Gift Cards

For credit and debit cards, you can use Visa, Visa Electron, Mastercard, and a whole lot more. Amazon also accepts American Express, Maestro, Solo, Eurocard, UnionPay, and Delta. For Maestro and Solo cards, you can only use those that were issued in the United Kingdom.

Regardless of your choice, you can enjoy the protection program of Amazon, which makes your transactions safe. You can also ask for refunds if the product you received do not meet the advertised features, or if you did not receive your product at all.

Can you buy Amazon Gift Card with PayPal?

Yes, you can buy an Amazon Gift Card with your PayPal account. Since Amazon Gift card is a product that is not sold as your regular item on the Amazon site, you can pay for it with PayPal if it is sold by a 3rd-party seller.

The Amazon Gift Card comes in many denominations, and you can have these cards shipped to your house. You can buy in the following denominations:

  • $20
  • $50
  • $75
  • $100
  • $150

Once you receive it, you can use that to pay for any item that is sold on the Amazon universe. It is mostly used by people who want to give something to their loved ones, and then let these loved ones choose what to buy on Amazon.

However, you can use this as an alternative if you do not want to buy on Amazon with any of the alternative payment methods mentioned earlier. Buy an Amazon Gift Card, send it to yourself, and then use that card to shop on the Amazon platform.

Be careful, as not all 3rd-party sellers are legit. Make sure you have reviewed the company’s background before paying, as you can be scammed.

One thing to note here is that an Amazon Gift Card is not a debit card. It is not linked to Visa and Mastercard. It only works in the Amazon system. It is a marketing tactic where you buy a card, but the recipient f the card can only use that money in Amazon. Basically, the money goes back to Amazon.

After buying the Amazon Gift Card, how do I redeem it?

To redeem your Amazon Gift Card, you need to log in to your account. From there, look for the Your Account drop down, and choose Gift Cards.

The website would open a new one, and you have to click on a button that says Redeem Gift Card. This will take you to a box where you have to input the code from your physical Amazon Gift Card. Once this is done, the balance should reflect on your Amazon account.

You cannot redeem the money if you do not have the physical card with you. Also, you cannot use it if you do not have an Amazon account. However, you can use anyone’s gift card in your account.

You can shop for items lesser than your Amazon balance, or shop for those that have more value. But if you shop for more, then Amazon will ask you to pay the excess amount using the payment methods we described earlier.

If the amount you purchased is lower than your balance, the excess will stay on your Amazon account. You can use that later for other purchases.

Can you use the PayPal prepaid debit card on Amazon?

Yes, you can do this. The PayPal debit card is available to US and UK users. The balance of these cards come from the PayPal balance.

Since the PayPal debit card is powered by Mastercard, it works where every Mastercard is accepted. This being said, you can use the PayPal debit card to buy directly on the Amazon website. The thing is that PayPal debit cards are only available in the US and the UK.

To apply for this card, you have to log-in to your PayPal account, and search for the term in the help section. Once you found the information, the system itself will guide you on the application process.

The PayPal debit card is convenient. If you are eligible, then apply for one. Not only can you use it as a debit card where Mastercard is accepted, you can also use it to withdraw money from ATMs.

What is PayPal Gifts?

This is a program where you can buy digital cards, also called e-cards. These cards have financial value, and you can send them to your loved ones. Once they receive it, they can use the card to buy stiff online.

Examples of these cards are:

  • App Store
  • Google Play
  • Domino’s
  • Nintendo

So, if you have a nephew who loves Nintendo, you can buy a Nintendo gift card and send it to him online. He can use that card to buy things he can download from Nintendo. If you buy a Google Play Card, he can use that card to pay for items he bought on Google Play Store. You can also buy PayPal Gifts for dining and other services.

Thin thing is, Amazon Gift Card is not part of this program. You can only buy the Amazon Gift Card from Amazon or from 3rd-party sellers.

Will PayPal be accepted in Amazon soon?

No, not by a long shot. Although the two companies have been in talks since 2017, it is not likely that these two giants are going to work together.

For one, Amazon does not need PayPal. As mentioned earlier, Amazon has its own payment processing system, plus it already accepts payments from several credit card issuers, so adding PayPal to the mix does not make a lot of business sense. Second, Amazon is essentially going to kill its own Amazon Payments if it allows PayPal in the system.

Summary

PayPal is still one of the best e-commerce payment systems. But Amazon is a giant as much as PayPal is. However, PayPal is nothing more than a payment processor, which Amazon was essentially able to replicate. Even if Amazon Payments is not as big as PayPal, it does the job of processing money from customers’ cards and bank accounts to amazon’s bank.

While it may sound bad, we are not really positive that the two companies can work together. PayPal has a lot to gain if its services would be accepted in Amazon, but Amazon has nothing really big to gain from it.

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