With New Service, Amazon Taking on PayPal as Online Payments Competition Heats Up

Consumers are increasingly turning to online payments, primarily via credit cards, for purchases of goods and services.
And online retail giant Amazon is not going to let PayPal take all the credit.

Amazon launched a new service Monday allowing customers to automatically pay recurring charges, like monthly subscription fees or phone bills, using their Amazon log-in details, including credit card data.
Essentially, it’s a direct competitor to PayPal. Amazon will allow its more than 240 million active users to use credit card details stored on Amazon.com to pay for services and products on other sites.
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.’
Amazon said it had been testing the service in recent months with fledgling mobile carrier Ting to “impressive” results.
The service can also be used to transfer money between personal users.
The launch comes ahead of an event scheduled for June 18. Amazon CEO Jeff Bezos is expected to unveil a 3-D smartphone, potentially giving Amazon another boost in mobile payments.
The sector has drawn interest from a number of large tech companies of late. For years, Google offered a phone-based payment system known as Google Wallet that works with certain phones using the company’s Android operating system.

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