Placing a stiff competition for Paypal, tech giant Amazon has now entered the payment gateway services with the launch of Amazon Payments. The new service will allow Amazon customers with an option to pay on the associated web-stores with their Amazon account information.
Companies encourage their customers to create an online account in order to offer a personalized buying experience and on the other side buyers also want the advantage of creating an account to save purchase preferences, but a majority is bothered by the hassles of registering on the website, which in turn makes the customers choose to shop on sites that offer friction-less and simpler online payment options.
Understanding this scenario, Amazon has now added this new service which would allow customers to not only login and but also to pay on any participating site using their Amazon credentials.
The new service is not only something productive for Amazon but also to the other companies because it will allow the companies to leverage 215 active online shoppers with Amazon accounts to shop on their websites.
The Login and Pay with Amazon will work seamlessly on tablet, mobile, and desktop devices. The retailers will also get fraud protection from Amazon at no extra fee involved.
The company has also assured that the users’ credit-card information will not be shared with the participating merchants, which might in turn limit the system’s appeal for merchants. It also states that it will not be having any details regarding what its users are actually buying, but will only have access to the dollar amount.
A few of the companies who have used the service include Autoplicity.com, Gogo and Build.com.
Other than Paypal, as per reports, Square is also planning about ‘Pay with Square’ digital wallets and payment code support. Even companies like Google through Wallet and Facebook via its own currency and physical gifts have also tried using login information as credentials to make online payments.
Iamwire Take: However it looks like through this service Amazon is directly targeting eBay’s Paypal which processed USD 29.8 Bn in transactions on non eBay sites in Q2 this year. Just like Paypal, it has also kept its pricing at 2.9%+USD 0.30 per transaction. But it has to be seen how Amazon will leverage its 215 Mn registered customer base to compete with Paypal which has a number of offline payment tools and features.
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