Pay. Although it hasn't been reported whether or not this extends to small and medium-sized businesses (SMBs), new data from Cowen and Company found that many are not even aware of the service.
Indeed, seven in 10 US SMBs surveyed in April 2018 said they were unfamiliar with it. And just 11% said they were considering Amazon Pay as a payment option.
Conducted prior to reports of Amazon’s discounting strategy, awareness and consideration of use is bound to increase, but Amazon may need to sweeten its offer through added perks to entice SMBs.
In Cowen and Company's survey, 41% of respondents said they would consider accepting Amazon Pay if it includes access to other Amazon services of value like delivery fulfillment and data and analytics, or offers for Amazon Prime subscribers, who now exceed 100 million worldwide.
Another 30% said they’d adopt Amazon Pay if it was more affordable than competitors like PayPal and Apple Pay, and included add-on services. About a quarter of SMBs respondents felt the decision would be made on Amazon Pay’s competitive pricing alone.
Since its relaunch in 2013, more than 30 million consumers have used Amazon Pay, and about half are reported to be Amazon Prime subscribers. The service lets them log in to their Amazon account and use pre-stored credit cards and delivery addresses to finalize a purchase instead of filling out their payment details. Watchmaker Shinola and retailers like ThredUP and Moda Operandi are using the service.
Unlike most SMBs, consumers are aware of the service. According to Cowen and Company, 73% of Prime members and 59% of non-Prime members have heard of the payment solution.
When respondents were asked which payment option they’d prefer to use (Amazon Pay, PayPal or traditional methods), not surprisingly, Prime members (27%) were more willing than non-Prime members (10%) to use Amazon Pay.