Amazon May Be Changing The Way You Pay Online

Posted: Apr 4 2016, 5:55pm CDT | by , in News | Latest Business News


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Amazon May Be Changing the Way You Pay Online
Credit: Amazon

Paypal is one of the most popular options online to pay for things because it gives users a sense of security. Now, Amazon might have a similar option for users. All you will have to do is type in your username and password, and you can pay.

This middleman service will be called "Amazon Payments" and it is expected to give some extreme competition to PayPal and ApplePay.

Some online retailers are already using Amazon Payments, which allows customers to check out using, and therefore have the payment information, names, and addresses that would otherwise have to be typed into the system.

In the announcement of the new program today, Amazon named three platforms that are already participating, including Ottawa firm Shopify, Paris company PrestaShope, and Tokyo's Future Shop Co. However, the option is open for hundreds of thousands of online merchants, and they are likely to pick up many more in the coming days.

Allowing the program would mean that checkouts could be quicker and easier, which will resort in additional sales. It would also mean more revenue for Amazon.

Amazon charges merchants 2.9% of each transaction -- a bit more than the 2.75% charged by San Francisco payments firm Square -- plus a 30-cent fee, according to TechCrunch.

Michael Pachter, an analyst at downtown Los Angeles brokerage Wedbush Securities, said that these are easy fees, and are desirable to the company, because they don't have to build anything new.

"They are merely leveraging the infrastructure they built for themselves," Pachter said.

"It may still be an uphill battle for Amazon payments to gain a lot more traction with merchants," said Colin Sebastian, an analyst with brokerage Robert W. Baird. "That said, Amazon does have a lot of customers who may wish to use Amazon Payments."

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<a href="/latest_stories/all/all/46" rel="author">Noel Diem</a>
Noel passion is to write about geek culture.




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