Amazon’s New Payment Service To Compete With Paypal & Google Checkout
There is a report this morning on Techcrunch announcing that Amazon has been quality testing a new payment service they have planned to be a part of the Amazon Web Services. The new processing and payment service will be an extension of their existing payments service where they allow third parties selling products on Amazon’s network to receive payments from buyers.
For now, Amazon is likely going to keep this a redirect payment service, like Google offers. Users will be directed to Amazon servers to continue on in the checkout process and ultimately buy the item before being returned to the original merchant. The report also mentioned that the service will allow sites to use Amazon to manage payments between users and receive confirmation of any transactions they have made.
If they do plan on launching a payment service of their own they have their work cut out for them. Paypal has owned the payment processing market for quite some time and even a company like Google has had a hard time competing with Paypal. I wonder how Amazon plans to do it? Is there really anything they can do that would be unique to the payment industry? I think the main thing they have going for them is a huge, well established user-base (something Google Checkout didn’t have when it launched). They may be able to reach out to their existing users and get enough on board to make something happen, but it’s highly unlikely that there is room for all three in the marketplace.
I think if this ends up happening soon, that it will be quite awhile (at least a year) before it is well known enough and secure enough for use on a large scale. We’ll see, maybe Amazon will have some amazing new features or usability like no other and they’ll end up capturing a large enough corner to compete. Only time will tell.
Article Information
View reader comments...- Subscribe to our articles feed
- Subscribe to our comments feed
- Subscribe to our email updates
- Email this article to someone
- Add to Technorati favorites
Our Subscribe page has even more ways, including our blog widget.
Bookmarks: or use Permalink
Read Related Articles In: Industry News,eCommerce Business
SEOmoz: 
Sphinn: 
MyBlogLog: 
Gooruze: 
LinkedIn: 
Digg: 
Delicious: 
StumbleUpon: 
Technorati: 
Fetch:
1 Reader Comment or Link
Add a new comment...Links to this Article
TrackBack URI...Add a Comment