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Amazon PayPhrase: Incentivizing Growth with 5% Cashback to Use

Submitted by Ryan Spoon on December 15, 2009 – 11:16 amView Comments

PayPhrase is an attempt to easily enable off-Amazon merchants to easily integrate Amazon identity, purchasing and shipping; and, it is clear that Amazon considers PayPhrase a strategic priority. Perhaps PayPhrase is a foward-thinking response to Facebook Connect and the much anticipated Facebook payments platform (whatever it initially and ultimately looks like). Perhaps it is the next wave of growth (ala PayPal).

What is Amazon PayPhrase?

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.

Why Should I Use a 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.

On Amazon, PayPhrase is being heavily promoted – both in traditional ad placements and as an appetizing “special offer” of 5% cashback:

amazon payphrase

Off Amazon, PayPhrase has even bigger discounts. Below is a 10% off on purchased made with PayPhrase on CarToys.com. Buy.com, Jockey, DKNY, Patagonia and other major merchants also enabled PayPhrase in time for holiday shopping:

amazon payphrase on cartoys

jockey amazon payphrase

Popularity: 1% [?]

  • Phillip Morelock
    Frankly -- and I don't think I'm either stupid or wholly untechnical -- I just don't understand the product. And I don't think I'm alone.

    Is this a replacement for password authentication? Who knows my phrase? Or am I just making up a new phrase each time? I'm sure I could read some information that would explain it, but I just can't be bothered. (Besides, then I wouldn't have the time to write this blog comment).

    For such a "new" concept, they should be working a lot harder on marketing it and explaining it.
  • iain
    It's a way of imposing limits of scope on a set of credentials. Your ID and password are all-powerful in most platforms. Your PayPhrase can only buy stuff with *this* card, ship to *this* address, up to *this* monthly limit, e-mail order confirms to *this e-mail address etc etc...given these restrictions you can then use it to check out without creating or using IDs and passwords on sites that accept it, and without leaving the site either.
  • Phillip Morelock
    Ah thanks for explaining it; I understand now. I guess I would still maintain this was not a strong product launch from a marketing perspective.

    It also seems like a poor man's version of Facebook Connect (rich man's version?). It requires a much steeper learning and configuration curve than something like single-sign-on, but I suppose it can be easy to use once you're all set up.
  • iain
    the PayPhrase cash back promo is over, ran midnight 12/11-12/13.
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