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Amazon Launches PayPhrase to Compete with PayPal

November 10th, 2009 by Skip McGrath

This morning I got an email from Amazon asking me if I wanted to set up my Pay Phrase. I clicked on the link and really liked what I saw. Pay Phrase is a 2 or 3 word phrase you create that can be used to shop on Amazon or on Amazon’s partners such as DKNY, Car Toys, Buy.Com and Pantagonia.

When you shop on the web, just look for the Pay Phrase button. When you click on it, you enter your phrase, type in a 4-digit pin number and you are done. Amazon will handle the payment to the vendor, and give the vendor your shipping address.

PayPhrase is an easy-to-remember shortcut to shipping and payment information in your Amazon.com account. Use it for Express Checkout at Amazon.com and across the web.

Benefits of PayPhrase:

  • Privacy:  Shop securely across the web without sharing your credit card.
  • Express Checkout:  Speed through checkout without having to sign in.
  • Parental controls:  Let teens shop online within limits you set.

Each PayPhrase is two or more words, and the entire phrase must be at least four or more characters. Amazon checks availability for you as you create your PayPhrase. No digits or special characters are allowed, but a PayPhrase can be up to 100 characters in length.

It only took me a couple of minutes to set up. After I set it up I went onto Amazon and used it to buy a Christmas present for my Granddaughter. One click and I was done.

Will PayPal be Next?

I suspect PayPal will take notice and come up with something similar. PayPal is far larger than Amazon and is used by tens of thousands of websites. So if PayPal creates something similar, I think it will find market traction quickly.


Learn how to sell on eBay with The Complete eBay Marketing System, written by an eBay Power Seller who sells on eBay every day.


Comment from Bruce
Time November 26, 2009 at 8:25 pm

A free tool for Marketplace sellers. Easily Calculate your selling price with the selling fees by profit margin or gross profit dollars for Google Checkout, Paypal and Amazon Marketplace.  Now you know what to charge a customer by using the following free tools, PayPal calculator, Google Checkout Calculator and an Excel sheet that you can download that will be an Amazon Marketplace fee Calculator.

Comment from Diana Hershberger
Time December 13, 2009 at 7:46 pm

I have been trying all evening to purchase a TV from Amazon using the “PayPhrase.” There is no button, no option, no phone to call to find out how to use it.

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