Amazon is introducing a new payment option Monday that has many in the media declaring war between the e-commerce site and PayPal.
It’s an addition to Amazon Payments, which the site originally launched in 2007. The service lets you log into third party sites and pay with details stored on your Amazon account.
Now, you’ll be able to use the credit card info you’ve saved on Amazon to make recurring payments — think subscriptions and bills.
Or how about for a weekly food delivery service? Startup PeachDish was reportedly one of the early testers, and now, it’s using Amazon as its sole payments source.
It’s easy to see why this could make sense for a startup that relies on subscription fees.
CNN spoke with an analyst at Aite Group, who said Amazon has a reputation for security. Users might not trust a new startup right away, but they know the name Amazon.
That said, some 148 million people already use PayPal. The eBay-owned company has had a similar recurring payment option for a while now.
Still, The Verge reports, “By pushing into the realm of digital music subscriptions and bill payment, Amazon has a real chance to outstrip the competition.”
Although the company has been testing its service with startups, TechCrunch reports it will be open to any web company using this kind of payment option.
The site spoke with Amazon, who said customers will be able to set up recurring payments with just a few taps. Your authorized bills and payments will show up on the Amazon Payments website, where you can edit them as needed.
Amazon will reportedly take a fee for every transaction – like PayPal. But The Wall Street Journal says, “Amazon has said it doesn’t collect information about what customers buy on other sites using its payment option, just the dollar amount.”
This news comes at an interesting time, just before Amazon is set to reveal this gadget held, but not seen, in the hands of happy customers. Most in the media are pretty sure it’s the company’s first-ever phone. (Via Amazon)
And if it is, Gigaom says, the service will likely allow customers to pay for Amazon Appstore purchases.
On that note, Apple is also reportedly working on a mobile payments strategy as well. It announced last week, it will give developers access to its Touch ID feature, which could open up payment possibilities. (Via Mashable)