Wednesday, August 1, 2007

Amazon To Launch Payments Services; Will Compete With PayPal and Google Checkout

Look for a launch announcement by Amazon this week or next of a new web service around payments, adding to their S3 (storage), EC2 (virtual server) and other services. They’ve been quietly testing the service, which will compete with PayPal and Google Checkout, for a few weeks. It is an extension of the existing Amazon Payments, which allows third parties selling items on Amazon’s extended network to receive payments from buyers.

We hear that for now at least this is a redirect service only, like
Google Checkout. Users will be redirected to Amazon’s servers to
complete the payment and then returned to the original site. PayPal
also offers an integrated solution that allows users to remain on the
original ecommerce site, an attractive feature for larger partners. The
service will also allow sites to use Amazon to manage payments between
users, and receive confirmation of transactions. This will be
particularly useful for the new crop of online money management
services.


PayPal, owned by eBay, still dominates this space, and the spats between them and Google are becoming legendary.



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