PayPal has revealed that it is in talks with Amazon in a move that could see the giant marketplace finally start to offer PayPal as a way to pay.
Revealing the talks in an aside at the presentation of PayPal’s results this week, PayPal CEO Dan Schulman said in an interview: “We have been in conversations with Amazon. We’re closing in on 200 million users on our platform right now. At that scale, it’s hard for any retailer to think about not accepting PayPal.”
Schulman added that the talks had centred around “how to use one another’s assets to the mutual benefit of our customers”.
Amazon has stayed tight-lipped on the matter, but there are benefits for them, and not just PayPal, says Dan Wilson, editor of eSeller’s sister title Tamebay. “After all there will be people out there who trust PayPal but don’t necessarily want to put their bank details on other sites. And anything that greases the wheels of ecommerce, such as offering PayPal, is in their interest.”
It would be a huge feather in PayPal’s cap to be featured on Amazon, of course. It would enable them to make money from two of the world’s biggest marketplaces. We don’t know how these conversations will develop over time but it’s clear that a PayPal and Amazon hook-up could well be one of the biggest advantage of the eBay/PayPal split.