Amazon Pay Statistics 2024: Key Insights on Growth, Market Share, and Future Trends
Barry Elad
Updated · Nov 26, 2024
Amazon Pay, launched in 2007, has steadily become a significant player in the global digital payment landscape. Initially designed to streamline transactions for Amazon’s marketplace, its reach now extends far beyond. Today, it is utilized by millions of businesses and consumers, offering a seamless and secure payment option for e-commerce and beyond. As consumers increasingly opt for digital wallets and contactless payments, Amazon Pay is positioning itself as a key solution. In 2024, its influence continues to grow, particularly in e-commerce and retail, as more companies adopt this service to facilitate faster and safer payments.
Editor’s Choice: Key Milestones in Amazon Pay’s Growth
- In 2023, Amazon Pay processed an estimated $75 billion in transactions, marking a 12% increase compared to 2022.
- By the end of 2024, Amazon Pay is projected to account for 5.3% of the global online payment market, up from 4.8% in 2023.
- Amazon Pay Later, launched in 2020, has become one of the fastest-growing features, with over 10 million users globally as of 2023.
- The platform recorded an impressive 2.5 billion transactions in 2023, with forecasts predicting 3 billion transactions by the close of 2024.
- More than 500,000 merchants worldwide now accept Amazon Pay, representing a significant leap from 400,000 in 2022.
- Mobile usage of Amazon Pay surged by 18% in 2023, as consumers increasingly shifted towards smartphone payments.
- In 2024, Amazon Pay expects to add 50,000 new merchants to its ecosystem, bolstering its presence in the global market.
Market Share of Amazon Pay in the Global Payment Industry
- In 2023, Amazon Pay held a 4.8% share of the global digital payment market, competing with major players like PayPal and Apple Pay.
- By the close of 2024, this market share is expected to increase to 5.3%, as adoption accelerates in both the US and international markets.
- In the North American region, Amazon Pay accounts for 6.2% of all e-commerce transactions, making it the third most used payment gateway behind PayPal and Visa.
- Amazon Pay has seen rapid growth in Europe, where its market share grew from 3.5% in 2022 to 4.2% in 2023, driven by increased adoption in countries like Germany and the UK.
- Asia-Pacific remains a key growth market for Amazon Pay, with its share expected to rise from 2.8% in 2023 to 3.5% in 2024, driven by increased digital payments in India and Japan.
- Amazon Pay’s cross-border transaction volume increased by 22% in 2023, further solidifying its global reach.
- By 2024, Amazon Pay is projected to handle over $90 billion in global transactions, continuing its upward trajectory in the payment sector.
| Year | Global Market Share (%) | North American Market Share (%) | European Market Share (%) | Asia-Pacific Market Share (%) |
| 2022 | 4.8 | 6.2 | 3.5 | 2.8 |
| 2023 | 4.8 | 6.2 | 4.2 | 2.8 |
| 2024 (projected) | 5.3 | 6.2 | 4.2 | 3.5 |
Number and Share of Merchants Who Use Amazon Pay
- As of 2023, over 500,000 merchants worldwide accept Amazon Pay, representing a 25% growth from 2022.
- In the United States, approximately 30% of e-commerce businesses now offer Amazon Pay as a payment option.
- Small and medium-sized enterprises (SMEs) make up about 65% of the total merchants using Amazon Pay, reflecting its growing popularity among independent businesses.
- In Europe, 10% of online merchants have integrated Amazon Pay into their payment systems, with this figure expected to rise to 12% by the end of 2024.
- The number of merchants utilizing Amazon Pay in the Asia-Pacific region rose by 18% in 2023, primarily driven by its adoption in India, Japan, and Australia.
- In Latin America, Amazon Pay is expanding rapidly, with a 35% increase in merchants from 2022 to 2023.
- By 2024, Amazon Pay aims to onboard an additional 50,000 merchants, focusing on cross-border e-commerce and retail sectors.
Industry Segments Statistics Utilizing Amazon Pay
- E-commerce continues to be the dominant industry for Amazon Pay, accounting for 68% of all transactions processed through the platform in 2023.
- Retailers using Amazon Pay saw a 15% increase in transaction volume in 2023, highlighting the platform’s growing importance in physical and online stores.
- The travel industry adopted Amazon Pay at an accelerated rate, with a 20% increase in the number of travel agencies and airlines offering Amazon Pay as a checkout option in 2023.
- Subscription services, such as streaming platforms and software providers, accounted for 10% of the total transaction volume through Amazon Pay in 2023, showing steady growth in the sector.
- The healthcare industry has also embraced Amazon Pay, with a 12% increase in usage for paying medical bills and purchasing health-related products and services online in 2023.
- In the automotive industry, Amazon Pay facilitated 5% of digital transactions for purchasing auto parts and services in 2023, a niche but growing segment.
- Gaming platforms utilizing Amazon Pay saw an impressive 22% year-over-year growth in 2023, with more in-game purchases and subscriptions made through the platform.
| Industry Segment | % of Total Transactions |
| E-commerce | 68 |
| Retail | 15 |
| Travel | 20 |
| Subscription Services | 10 |
| Healthcare | 12 |
| Automotive | 5 |
| Gaming | 22 |
Amazon Pay Customers Statistics
- By the end of 2023, Amazon Pay had over 50 million active users worldwide, marking a 10% increase from the previous year.
- 42% of Amazon Pay users in the US made at least one purchase per month using the platform in 2023, indicating high engagement and repeat usage.
- In Europe, the customer base grew by 18% year-over-year, with Germany leading in Amazon Pay usage, followed by the UK and France.
- Amazon Pay’s mobile app usage increased by 25% globally in 2023, with more than 60% of users preferring to complete transactions through mobile devices.
- Age demographics reveal that 35% of Amazon Pay users are between 25 and 34 years old, making it the largest user group, followed by 18-24-year-olds, who represent 28% of the user base.
- In 2023, 58% of Amazon Pay users were male, while 42% were female, reflecting a balanced yet slightly male-leaning user base.
- The average transaction value using Amazon Pay increased by 8% to $115 in 2023, driven by a higher adoption rate among premium e-commerce platforms.
Amazon Pay Revenue Statistics
- In 2023, Amazon Pay generated approximately $1.5 billion in revenue, a 12% increase from 2022, as more merchants integrated the platform into their payment systems.
- Transaction fees accounted for 70% of Amazon Pay’s revenue, with the remaining 30% coming from value-added services such as fraud protection and currency conversion.
- The US market contributed the largest share of revenue, representing 50% of Amazon Pay’s global revenue in 2023.
- Revenue from the European market grew by 15% in 2023, driven by increasing adoption in Germany, France, and Italy.
- Cross-border transactions accounted for 25% of Amazon Pay’s revenue in 2023, with strong growth in international markets such as India and Japan.
- By the end of 2024, Amazon Pay’s revenue is projected to reach $1.8 billion, with increased usage among SMEs and large enterprises alike.
- Premium services, such as fraud prevention and digital identity verification, added $300 million to Amazon Pay’s revenue in 2023, highlighting its importance in securing digital transactions.
User Demographics and Usage Trends
- In 2023, 35% of Amazon Pay users were aged 25-34, making it the largest age group on the platform.
- The 18-24 age group represents 28% of the user base, with this younger demographic favoring Amazon Pay for its convenience and mobile-friendly features.
- In terms of gender, 58% of Amazon Pay users were male, and 42% were female, reflecting a slight male dominance in its user base.
- Mobile payments continue to rise, with over 60% of transactions being made through mobile devices in 2023, up from 55% in 2022.
- Amazon Prime members are more likely to use Amazon Pay, with 75% of Prime members in the US having used the service at least once in 2023.
- Users in the US tend to make larger transactions, with an average transaction size of $125 in 2023, compared to a global average of $115.
- In 2023, 68% of Amazon Pay users identified ease of use and familiarity with the Amazon brand as their top reasons for adopting the payment method.
Competitive Position: Amazon Pay vs. Other Platforms
- Amazon Pay ranked as the third-largest digital wallet in the US in 2023, with a 5.3% market share, behind PayPal and Apple Pay.
- In 2023, Amazon Pay processed $75 billion in transactions, compared to PayPal’s $1.36 trillion and Apple Pay’s $140 billion.
- Customer satisfaction with Amazon Pay was rated at 4.7 out of 5 in 2023, slightly below Apple Pay’s 4.8 but above PayPal’s 4.5.
- When it comes to merchant fees, Amazon Pay’s 2.9% plus $0.30 per transaction rate is comparable to PayPal and Stripe, making it competitive for small and medium-sized businesses.
- In the international payments segment, Amazon Pay saw a 22% growth in 2023, lagging behind PayPal, which grew by 25%, but ahead of Stripe’s 18%.
- Security features, such as fraud detection and buyer protection, are a strong suit for Amazon Pay, with 85% of merchants citing these features as critical benefits in 2023.
- In 2023, Amazon Pay’s mobile transaction volume grew by 18%, positioning it well against competitors like Apple Pay, which saw a 15% growth in the same period.
Adoption Across E-commerce and Retailers
- As of 2023, 30% of all US e-commerce retailers had integrated Amazon Pay into their platforms, a 12% increase from 2022.
- In the European Union, the number of online retailers using Amazon Pay increased by 15% in 2023, with Germany leading the way.
- Physical retailers adopting Amazon Pay grew by 20% in 2023, particularly among smaller chains looking to offer convenient digital payment options.
- Luxury goods retailers saw the highest adoption rate of Amazon Pay, with 25% of high-end brands offering it as a payment option in 2023.
- Grocery chains accounted for 18% of new Amazon Pay integrations in 2023, as consumers increasingly seek contactless payment options for in-store purchases.
- In 2023, 12% of all Amazon Pay transactions were for digital goods such as subscriptions, software, and gaming, up from 10% in 2022.
- By 2024, it is expected that 40% of US e-commerce sites will offer Amazon Pay, further solidifying its role in the online payment ecosystem.
Companies Using Amazon Pay (Revenue)
- Starbucks integrated Amazon Pay into its app in 2023, and by the end of the year, it had processed $500 million in transactions through the platform.
- Nike, an early adopter of Amazon Pay, saw its online sales via the platform grow by 15% in 2023, contributing over $300 million in revenue.
- Shopify merchants using Amazon Pay saw a 25% increase in sales conversions in 2023, with an average revenue boost of $1.2 million per merchant.
- Ticketmaster processed over $200 million in transactions through Amazon Pay in 2023, accounting for 5% of its global ticket sales.
- Under Armour, which began using Amazon Pay in 2022, reported $150 million in sales via the platform in 2023.
- Whole Foods, owned by Amazon, facilitated over $1 billion in transactions via Amazon Pay, as part of a wider integration of Amazon services within its stores.
- Expedia processed $250 million worth of travel bookings through Amazon Pay in 2023, representing a 10% growth from the previous year.
Technological Innovations and Features
- In 2023, Amazon Pay introduced biometric verification for mobile payments, which saw 45% of users opting in for fingerprint or face recognition.
- Voice payments through Alexa-enabled devices grew by 30% in 2023, with over 2 million transactions processed via voice commands.
- Amazon Pay rolled out one-click checkout across all merchant sites in 2023, resulting in a 25% increase in conversion rates for participating merchants.
- The platform’s fraud detection capabilities improved by 15% in 2023, helping merchants save an estimated $100 million in fraudulent chargebacks.
- Real-time payment tracking was introduced in 2023, allowing users to monitor their transactions more efficiently, a feature now used by 60% of active users.
- Cross-border payments were enhanced in 2023, with reduced transaction fees and faster processing times, resulting in a 22% growth in international transactions.
- Amazon Pay Later, the platform’s buy now, pay later (BNPL) feature, grew by 35% in 2023, with over 1 million new users.
| Feature | Growth/Impact (%) |
| Biometric Verification Adoption | 45 |
| Voice Payments via Alexa | 30 |
| One-Click Checkout Conversion | 25 |
| Fraud Detection Improvement | 15 |
| Real-Time Payment Tracking Usage | 60 |
| Cross-border Transactions Growth | 22 |
| Amazon Pay Later Growth | 35 |
Recent Developments
- In 2023, Amazon Pay expanded its buy now, pay later (BNPL) service, Amazon Pay Later, to five new countries, including Canada and Australia, allowing millions of users to access flexible payment options.
- Amazon introduced Amazon Pay for Business in India, providing small and medium enterprises (SMEs) with tools for contactless and seamless payments. This move contributed to a 25% increase in SME adoption by the end of 2023.
- In early 2024, Amazon Pay integrated cryptocurrency payments for select merchants, enabling users to pay with Bitcoin and Ethereum. This innovation is part of Amazon’s broader push into blockchain and digital assets.
- Sustainability initiatives were introduced in 2023, where Amazon Pay collaborated with carbon offset programs for eco-conscious users, allowing customers to offset their carbon footprint with each transaction.
- Voice payments through Alexa devices grew rapidly in 2023, with the feature now available in 15 new countries. Voice payments accounted for 8% of total Amazon Pay transactions by the end of 2023.
- Amazon Pay for In-Store Purchases expanded to major retail chains in the US and UK in 2023, allowing customers to pay for contactless in-store payments using their Amazon accounts, contributing to a 20% increase in merchant adoption.
- In Q4 2023, Amazon Pay launched a partnership with Visa and Mastercard, integrating faster checkout options for Amazon Pay users, reducing payment friction, and increasing conversion rates for participating merchants by 15%.
Future Trends of Amazon Pay
- Global expansion is set to continue, with Amazon Pay planning to enter 10 new markets in 2024, focusing on Latin America and Southeast Asia, where digital payments are rapidly growing.
- By 2025, Amazon Pay is expected to launch AI-powered fraud detection, leveraging machine learning algorithms to further reduce chargebacks and enhance security, a trend that could cut fraud-related losses by 20%.
- The adoption of biometric verification is expected to rise sharply, with Amazon Pay projected to integrate face recognition technology across all platforms by 2024, streamlining and securing payments globally.
- Voice commerce is anticipated to account for 15% of Amazon Pay transactions by 2025, as more consumers shift toward voice-activated purchases via Alexa-enabled devices.
- Amazon Pay for Subscription Services is likely to grow, with forecasts suggesting a 20% increase in recurring transactions as businesses in the entertainment, SaaS, and media industries integrate Amazon Pay as a subscription payment option.
- Amazon Pay for Retail will focus heavily on omnichannel experiences, linking online and in-store purchases through QR codes and mobile wallets, with 70% of major US retailers expected to offer Amazon Pay by 2025.
- With the increasing popularity of digital currencies, Amazon Pay is projected to integrate more cryptocurrencies into its system, potentially supporting stablecoins and central bank digital currencies (CBDCs) by 2026.
Conclusion
Amazon Pay has evolved from a simple digital wallet into a comprehensive global payment platform. With continuous innovations in biometric security, voice commerce, and blockchain integration, Amazon Pay is well-positioned to further dominate the digital payment landscape in the coming years. Its strategic expansion into new markets, combined with enhanced merchant services and AI-driven security, ensures that Amazon Pay will remain a vital tool for both consumers and businesses. As the payment industry becomes more interconnected and diverse, Amazon Pay is poised to leverage its brand trust, technical prowess, and expansive reach to set new benchmarks for digital payments worldwide.
Barry Elad
Barry Elad is a dedicated tech and finance enthusiast, passionate about making technology and fintech concepts accessible to everyone. He specializes in collecting key statistics and breaking down complex information, focusing on the benefits that software and financial tools bring to everyday life. Figuring out how software works and sharing its value with users is his favorite pastime. When he's not analyzing apps or programs, Barry enjoys creating healthy recipes, practicing yoga, meditating, and spending time in nature with his child. His mission is to simplify finance and tech insights to help people make informed decisions.
