Amazon.com has launched a competitor to Paypal, allowing consumers to pay for goods they use online with the credit card information Amazon has on file for them.
The service, which launches today across the globe, allows the company’s more than 240 million active users to use credit card details stored on Amazon.com to pay for services such as a monthly phone bill or a digital music subscription. EBay Inc’s PayPal has long dominated online payments services but Amazon sees plenty of scope to push into new areas. The new service broadens Amazon’s profitable role as a middleman for third-party sellers, which account for 40 percent of its sales and extends its influence beyond its website.
Amazon then charges a fee on each transaction, boasting ‘your shipping and payment information is safely stored with Amazon and accessible on thousands of sites where you love to shop.