Amazon extends its online payment service to more businesses » SMEInsider

Amazon extends its online payment service to more businesses

The e-commerce giant has introduced features that allow customers to make subscription payments on other websites using their Amazon sign-in details. The move has been seen by many, including Reuters, as a sign that the company is stepping up its challenge to Paypal.

Paypal, which is owned by Amazon’s competitor, Ebay, still dominates the online payments market. Over 8 million businesses use it to process credit card payments made by customers through their websites, leading Peter Karpas, Paypal’s former North American Vice President, to say in 2012 that “the heart of Paypal is small business.” In recent years, however, SMEs have grown increasingly critical of the company, with sellers reporting poor customer service, account freezes and money held “hostage.” This has opened up opportunities for Amazon to win over dissatisfied Paypal clients and gain more traction in the online payments market.

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,” said Tom Taylor, Vice President of Seller Services at Amazon.”We hope whoever the next Spotify out there is thinking about Amazon.”