Can You Use PayPal on Amazon?

At Lillian Purge, we specialise in Ecommerce SEO Services and have developed comprehensive guidance on whether you use PayPal on Amazon.

PayPal is one of the most popular online payment systems in the world, used by millions of shoppers for its speed, convenience, and security. Amazon, meanwhile, is the largest ecommerce platform globally, offering multiple ways to pay for products. Yet many customers are surprised to discover that Amazon does not accept PayPal directly. Understanding why that is and what alternative payment options exist can help both buyers and sellers make informed choices when shopping or selling through Amazon.

Why Amazon Doesn’t Accept PayPal Directly

Amazon and PayPal are both dominant players in online commerce, but they are also competitors. PayPal was originally owned by eBay, which was Amazon’s main marketplace rival for many years. When PayPal became an independent company, Amazon still chose not to integrate it as a payment option, preferring to maintain full control over its own payment ecosystem.

Amazon offers its own system called Amazon Pay, which works in a similar way to PayPal but is linked directly to customers’ Amazon accounts. This allows Amazon to keep users within its platform, manage data more effectively, and reduce reliance on external payment providers.

So, while you can’t click a “Pay with PayPal” button at Amazon checkout, there are a few workarounds and alternative methods for using PayPal funds to shop on Amazon.

How to Indirectly Use PayPal on Amazon

Although Amazon doesn’t officially support PayPal payments, you can still use your PayPal account indirectly to complete purchases. Here are several legitimate methods:

1. Buy Amazon Gift Cards with PayPal
   This is the most common method. You can purchase Amazon gift cards from third-party retailers that accept PayPal, such as PayPal Digital Gifts, eGifter, or select online marketplaces. Once purchased, redeem the gift card on your Amazon account and use it as your payment balance.

2. Use a PayPal Debit or Credit Card
   If you have a PayPal Cash Card, PayPal Prepaid Mastercard, or PayPal Credit account, you can link it to your Amazon account just like any other card. Because these are issued through Mastercard, Amazon treats them as regular debit or credit cards.

3. Transfer PayPal Funds to a Linked Bank Account
   If you want to use PayPal funds directly, transfer the balance to your bank account and then use that account or an associated debit card to make your Amazon purchase.

Each of these methods allows you to use your PayPal balance indirectly, though not as seamlessly as paying through PayPal itself.

Pros and Cons of Using PayPal Indirectly on Amazon

Using PayPal workarounds offers flexibility, but it’s not always ideal.

Advantages:

• Access your PayPal funds without waiting for bank transfers.

• Maintain buyer protection through PayPal when buying gift cards from verified sellers.

• Greater spending flexibility if you keep funds in PayPal rather than a traditional bank account.

Disadvantages:

• You lose PayPal’s purchase protection once funds are converted to an Amazon balance.

• Gift card purchases can involve small processing fees.

• Not all PayPal-issued cards are accepted, depending on your location or account type.

For frequent Amazon shoppers, it’s often easier to add a bank card directly or use Amazon Pay for faster checkouts.

How Amazon Pay Differs from PayPal

Amazon Pay and PayPal share the same purpose providing a secure, fast online payment method but their ecosystems are built differently.

• Amazon Pay links directly to your Amazon account and uses your saved payment methods for purchases both on Amazon and on external partner websites.

• PayPal is a standalone service that stores funds in your account and can be used across thousands of websites worldwide.

Amazon Pay benefits from being deeply integrated into the Amazon experience, while PayPal offers more flexibility across different platforms.

For sellers, Amazon Pay is automatically integrated into the Amazon checkout process. PayPal, by contrast, is often used on independent ecommerce websites built on platforms such as Shopify, WooCommerce, or Wix.

Can Amazon Sellers Accept PayPal?

If you’re an Amazon seller, you can’t directly accept PayPal as a payment method within the Amazon platform. All transactions are processed through Amazon’s internal systems, ensuring consistency and buyer protection under Amazon’s policies.

However, sellers who also operate independent websites or social media shops can use PayPal as a payment method there. Many successful brands use both Amazon for large-scale sales and PayPal-friendly platforms for direct customer relationships.

Security and Buyer Protection

One of PayPal’s biggest selling points is its buyer protection programme, which safeguards users from fraud and non-delivery. However, when shopping on Amazon, buyers already receive similar protection through Amazon’s A-to-Z Guarantee. This ensures customers receive their items as described or are eligible for a refund.

Because of this overlap, Amazon doesn’t have a strong reason to add PayPal as an official payment method. Both platforms prioritise secure transactions, but Amazon prefers to keep everything in-house to maintain control and efficiency.

The Future of PayPal and Amazon Integration

While there’s occasional speculation about Amazon eventually supporting PayPal, there’s no indication of this happening soon. Amazon continues to expand its own financial ecosystem through Amazon Pay, digital wallets, and even instalment payment partnerships like Affirm.

PayPal, meanwhile, has expanded into areas such as cryptocurrency, digital wallets, and business financing, keeping its focus outside Amazon’s ecosystem.

The two companies serve similar markets but maintain distinct business strategies. Any potential partnership would require both to align on user data control, payment processing, and buyer protection issues that have historically kept them apart.

Expert Tips for Managing Payments Across Platforms

Balance Your Payment Options for Flexibility
When running an online business or shopping across different marketplaces, it’s smart to maintain a balance between Amazon Pay, PayPal, and traditional banking. Each platform offers unique advantages. Amazon Pay integrates easily with your Amazon account, providing quick checkout and strong buyer protection. PayPal, on the other hand, is widely accepted across eCommerce sites and is particularly useful for handling international transactions. Keeping funds spread across multiple payment systems gives you flexibility, helps you manage cash flow efficiently, and ensures you can complete transactions even if one account faces temporary restrictions or delays.

Use PayPal for Amazon Gift Cards Responsibly
If you use PayPal to buy Amazon gift cards, make sure you purchase only from trusted sources. There are many third-party sellers online offering discounted gift cards, but some may not be legitimate. To avoid scams or issues with fraudulent codes, stick to verified platforms such as PayPal’s own digital gift store, major retailers, or Amazon’s authorised partners. Always verify seller credibility, check reviews, and ensure secure payment links before completing your purchase. Being cautious helps protect both your funds and your accounts from unnecessary disputes.

Link a PayPal Mastercard for Seamless Checkout
For those who frequently use both Amazon and PayPal, consider linking a PayPal Mastercard to your Amazon account. This setup bridges the two systems, allowing you to pay with your PayPal balance indirectly while still enjoying Amazon’s fast checkout process. It can also make managing your expenses simpler since your PayPal account records all spending in one place. Additionally, the PayPal Mastercard often offers cashback rewards or purchase protection, providing extra value when making larger eCommerce purchases.

Track Transactions Separately for Better Bookkeeping
If you sell products across multiple platforms, maintaining clear records for each payment method is essential. Track your PayPal and Amazon Pay transactions separately in your accounting software to prevent confusion and ensure tax accuracy. Many small businesses make the mistake of mixing transactions from different platforms, which complicates reconciliation later. By organising each payment stream individually—perhaps assigning unique reference tags or spreadsheets—you can identify fees, monitor cash flow, and spot potential discrepancies more easily. This approach simplifies bookkeeping and ensures smoother financial reporting at year-end.

Offer PayPal as a Payment Option on Your Website
For eCommerce sellers running an independent website, offering PayPal as a payment method can significantly increase conversions. Many customers prefer PayPal for its buyer protection, quick checkout, and ability to complete purchases without entering card details. Studies show that customers are more likely to finalise a transaction when their preferred payment option is available. Integrating PayPal with your checkout page also opens your business to international buyers who may not have UK-issued cards. By giving customers choice, you build trust, reduce abandoned carts, and create a smoother overall shopping experience.

Summary

You cannot use PayPal directly on Amazon, but there are practical ways to spend your PayPal balance on the platform. Whether through gift cards, PayPal debit cards, or transferring funds to your bank, several safe and simple alternatives exist. For sellers, Amazon’s built-in payment system offers security and convenience, while PayPal remains valuable for external sales and brand sites.

Both systems excel in their respective areas, and smart online retailers often use both to maximise flexibility and reach.

If you’re looking to improve your ecommerce performance or streamline your selling strategy across platforms, Lillian Purge can help. Our ecommerce SEO and marketing experts specialise in optimising visibility, conversions, and multi-channel growth.

We have also written in depth articles on How Much Does Amazon Charge to Sell? and How to Dropship on Amazon as within our Amazon Hub to give you further guidance.