Business

Amazon goes after PayPal by offering to handle payments for startups & online services

Above: The stage at Amazon's Fire TV media event

Image Credit: Devindra Hardawar/VentureBeat

Amazon will start handling payment services for startups and other companies starting today.

The move is only the latest example of Amazon inching into eBay-owned PayPal’s territory of acting as a middleman of sorts when it comes to online payments.

Unlike PayPal, however, Amazon doesn’t seem to be interested in setting up “bank accounts” to allow consumers to store money in order to make purchases from various businesses. Instead, Amazon will be giving select services and businesses a new way to let their customers to pay using the credit card information stored on their Amazon accounts.

Amazon already offers to handle payments for a handful of its own services, such as Woot, as well as a few it doesn’t own like Kickstarter. The goal of the service is to help drive sales to these companies among customers that already shop at Amazon. Those customers can easily chose the “Pay with Amazon” option when making a purchase. But it also comes down to trust, the company said.

“If you think about giving a merchant that you may not know very well the right to continue to charge your credit card in the future, you really want to know that a good relationship with Amazon stands behind that,” Amazon VP of seller services Tom Taylor told Reuters.

Amazon’s new payment handling could also provide the company with another source of revenue on top of what it already makes through online retail, hardware sales, and of course its cloud services.

More information:

Amazon.com, Inc. (NASDAQ: AMZN), a Fortune 500 company based in Seattle, opened on the World Wide Web in July 1995 and today offers Earth's Biggest Selection. Amazon.com, Inc. seeks to be Earth's most customer-centric company, where cu... read more »

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9 comments
Mike Downey
Mike Downey

Why would you start a headline with "I mean,"? Unprofessional.

Larry Yang
Larry Yang

Can't tell from the article... Is this just expansion of the same "Pay with Amazon" service that Kickstarter uses, or is this something different?

David Jack
David Jack

GOOD. Because Paypal and Ebay are pure dog-shit.

Ezeilo Uchenna J
Ezeilo Uchenna J

I am in Nigeria where Paypal has refused to set up because of the sin of a few fraudsters while Amazon has been receiving payments and shipping whatever it can to Nigeria for years. You don't want to imagine what it feels like when you cannot get an online solution because the provider only accepts paypal which you do not have. What am saying is that Paypal not coming to Nigeria is like M$, Google, Apple, Facebook, Amazon and all the rest passing such opportunities.

Ken Hoinsky
Ken Hoinsky

Amazon Payments has been around for years...