3 August 2007
Google Checkout and eBay’s PayPal are reportedly facing a new rival from etailing giant Amazon, as it prepares to launch its own online payment system.
The payment process, like Google Checkout, will redirect customers to Amazon’s servers to complete payments, as well as managing user-to-user transactions.
Although it is still unconfirmed by Amazon, the launch would further antagonise the battle between PayPal and Checkout, with brand recognition and strong relationships with other etailers likely to notably impact PayPal’s lead.
Reports from TechCrunch indicate Amazon has been testing the system for ‘a few weeks’ and look set to launch it within days.
PayPal, meanwhile are launching their own credit financing service called PayPal Pay Later which allows online retailers to offer credit accounts to customers. Confident that this move will significantly boost business, a spokesperson from PayPal told Reuters that research indicated that over half of PayPal users would be more likely to buy things if they could defer payment. The interest will be shared between PayPal and General Electric’s GE Money Bank, the service’s developer.
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