Updated from Jan. 26 to include Southwest partnership.
Over the past few years, Amazon (AMZN) has slowly been building up Pay with Amazon, its PayPal (PYPL) competitor, and the company today announced that the payment will now be accepted by Southwest Airlines (LUV) for in-flight purchases.
Signing on a large brand like Southwest is huge for Amazon as it competes in the heated digital payments space. The announcement follows some recent milestones Amazon shared in January for the payment solution.
Since 2013, more than 23 million customers have used Pay with Amazon to check out on a third-party site, according to Amazon. Those customers come from 170 different countries and spent an average of $84 per purchase in 2015. Half of those customers were Prime members, and 60% have a household income of more than $100,000.
Amazon also said the number of customers using Pay with Amazon as well as Pay with Amazon payment volume both grew by more than 150% year over year.
"It's about making life easier for our customers. Pay with Amazon makes it easier for our customers to pay wherever they may be shopping," said Patrick Gauthier, vice president of Amazon Payments.
But while Amazon was happy to report on the customers using Pay with Amazon, it has yet to say how many merchants actually accept its payment method. All Amazon said was that the number of merchants using Pay with Amazon grew more than 200% year over year.
Until Amazon is more transparent about that aspect, we won't really know whether or not Pay with Amazon could be a serious contender against PayPal.