Amazon expands its payment gateway to compete against PayPal
Amazon is expanding their payment service into subscription management starting today. Amazon customers that keep their credit card information stored with the company will be able to pay for different kinds of services with the new system, like subscription music. The area of payment middle-man has long been dominated by PayPal.
Preliminary testing shows some potential benefits for merchants that sign up for Amazon's new service. Mobile Virtual Network Operator (MVNO) Ting has been testing Amazon payments, and found that customers spent 30 percent more on Ting's website after setting up recurring payments through Amazon. Additionally, services that sign up will apparently only give Amazon data on the price of each transaction, without giving them any information on what items might have been purchased.
Amazon hopes that the new service will encourage customers to spend money with smaller companies, knowing that they won't have to hand over credit card details to a potentially untested merchant. What do you think of Amazon's new push into payments? Let us know below in the comments.