Amazon will today open its Login and Pay With Amazon system in Europe, the streamlined payment and checkout solution that made its debut in the U.S. in October.
This story first appeared in the September 16, 2014 issue of WWD. Subscribe Today.
The tool allows for consumers to use their Amazon credentials when purchasing from non-Amazon sites, eliminating the need to reregister and input personal information every time a consumer shops at a different e-tailer. The multichannel service is optimized to work across desktops, smartphones and tablets, and with a few clicks, allows users to purchase from Web sites with their Amazon information. Existing U.S. partners for the system are AllSaints, Guess and Giorgio Armani, as well as in-flight Internet provider Gogo. In the U.K., participating retailers include AllSaints, Secretsales.com, Moss Bros., Printed.com, Overclockers UK, FulhamBrassOnline and Paddock Spares. Engelhorn, Babyartikel, Moebelisten, Klimaworld and Hirschel-Cosmetic use the product throughout Germany.
“In the States, some retailers have seen as much as three times growth on new accounts since introducing Login and Pay,” said Annemarie Jung, director of external payments, Europe, for Amazon. Of the sellers that implemented Login and Pay, many saw 60 percent of their new customers registering on their Web sites using Amazon to complete their transactions.
Mobile payments are a hot issue of late: Apple revealed that Apple Pay will come out next month and Jack Dorsey’s mobile point-of-sale system Square secured a $100 million investment on Monday, bringing its total raised so far to several hundred million dollars. Twitter even rolled out a “buy” button on Sept. 8, where brands from Home Depot to Burberry can sell their products on the largely mobile social network.
It’s apparent all the major players want a piece of the payment sector, which leaves eBay’s subsidiary PayPal, the current leader in the space, under increasing pressure to innovate. The payment site underwent a re-branding in April — equipped with a new logo for the first time in seven years — and also entered 10 more markets this summer, including Belarus, Macedonia, Moldova, Monaco, Montenegro, Nigeria, Paraguay and Zimbabwe.
Amazon Payments’ expansion into Europe — available in the U.K. and Germany upon launch with other countries to follow suit — signals the e-tail giant’s efforts to become the go-to payment platform online.
Jung also sees this as a powerful tool in battling cart abandonment — as the ease of using existing payment information eradicates several steps in the e-commerce process.
“It’s specifically in the fashion industry that the cart abandonment rate is high. If you compare it to food and drinks, for example, it is almost 20 percent higher,” Jones said.
According to data from Redshift Research, 61 percent of consumers contended they would likely abandon a cart if the payment process took longer than 10 minutes. This number dips to 27 percent if the process takes more than five minutes — but the majority of those surveyed said less than two minutes is the key time window in which an online purchase should be completed.
Since AllSaints began to use Login and Pay With Amazon on its site, checkouts have been reduced by about one minute and 10 seconds. Also, within days of adopting the Amazon service, nearly one-quarter — or 24 percent — of all online purchases were made with Login and Pay. Conversion rates increased by 34 percent in the U.S., and in the U.K., average online orders were 15 percent higher than other digital payment methods.
“We don’t see it as only a payment solution. It [provides] more than just the checkout by having the login function and the payment solution in one product,” Jones said.