Amazon (Nasdaq: AMZN) launched its new merchant payment system this week, allowing it to compete with the largest online payment system from eBay's (Nasdaq: EBAY) PayPal.
"Login and Pay with Amazon" is designed to let merchants accept payments from online shoppers without requiring them to create a dedicated account. Plus, customers don't have to enter their address and card information on multiple sites over and over. The goal of the service is to replace "guest checkouts" with the ability for merchants to recognize repeat customers.
"Hundreds of millions of Amazon buyers can login and pay on your website or mobile site with the information already stored in their Amazon account. It's fast, easy and secure and helps you add new customers, increase sales, and reduce fraud costs," Amazon said on its Amazon Payments web site.
With its 215 million customer accounts, Amazon could really rival PayPal's offering in the future.
However, the Login and Pay service is not exactly new. It was just not well-publicized to merchants, shoppers, and well, really anyone. Since at least 2011, Amazon has allowed shoppers to check out and pay using preloaded payment and billing information from their Amazon accounts. Plus, earlier this year, Amazon began allowing sites and apps the option to let their visitors log in to their properties with their Amazon account information.
"I think we all saw that these things work well together, but wanted to go to market individually first. But sellers' reaction back to us was, 'These are great. Can they work together?' " Amazon Payments Vice President Tom Taylor told All Things D.
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