In a move that will likely cause a stir in the payment processing industry, American Express has announced the launch of its PayPal alternative. Also known as Amex Express Checkout, this payment processing method will rival PayPal in every aspect and is designed to provide an alternative for consumers who’ve been crying out for some refreshing experience.
Yes, PayPal is a great online payment method. But, as days pass by, checkout pages on shopping sites have been getting more crowded. So American Express felt that instead of its card holders signing up for other services such as PayPal to make payments online, why not allow them to use just the same provider? This way, if you’re a frequent shopper at any of the stores that accepts American Express cards, such as Ticketmaster, Newegg, and Warby Parker, then you will no longer need a payment gateway such as PayPal. Just shop and then pay using Amex Express Checkout.
Getting started with Amex Express Checkout is very simple. If you’re an American Express card holder, all you need to do is enter your username and password from your online Amex account and the tools will then auto-fill the rest of the payment information in the billing and shipping fields as necessary.
This move comes as major online payment providers such as Google and PayPal as well as credit card competitors MasterCard and Visa compete for ownership of BUY buttons on online stores and payment apps. The competition is particularly on the mobile front where the nuisance of entering consumer details such as name and password as well as shipping address every time one orders an item online has increasingly resulted in lower purchase rates. Even Apple has launched the much publicized Apple Pay that will allow consumers to pay for items easily and conveniently.
Nevertheless, the American Express payment platform differs significantly from the other payment platforms. For instance, shoppers will be allowed to use their existing American Express online account credentials. This means that current cardholders don’t have to sign up for new accounts.
Merchants will also benefit from the fact that American Express has put in place measures to allow instant transfer of cardholder information to the retailer if the cardholder permits it. All in all, it should be a good move for American Express, the consumer and retailers who currently have high risk merchant accounts allowing them to process American Express cards or who intend to do so in the future.