Amazon Introduces Online Payment Option to Rival PayPal’s

Pay with AmazonAmazon, the online retail giant, has just announced an online payment option that works very similar to PayPal’s ubiquitous checkout button on websites. Amazon’s method, dubbed “Login and Pay with Amazon,” is a new payment option that will allow Amazon users to check out and purchase goods more quickly on third-party websites.

When clicked, the button prompts users to enter their login credentials so they can use the credit card information stored in their Amazon accounts. This will greatly simplify purchases for Amazon users, who previously had to enter their account information for each Web transaction. Amazon takes a 2.9% fee plus 30 cents on each transaction.

Amazon appears to be attacking PayPal’s core strength as an online payment processor, at the very same time PayPal is looking to extend its reach into brick-and-mortar venues. Just yesterday PayPal introduced a new option to use QR codes and special payment codes to make in-store payments.

Amazon mentioned to the Wall Street Journal that it has no plans to share users’ credit card information with participating merchants. Additionally, Amazon says it will only be able to see the dollar total of purchases made with “Pay with Amazon, not what users are purchasing.

“This is strictly to allow a better experience anytime a customer shops anywhere,” an Amazon spokesperson said.
This could become a really big threat to PayPal if it were to allow the processing of payments for non Amazon-listed goods, too, making it more attractive to all Web developers to set up eventually.

Daniel Zeevi

By Daniel Zeevi

Daniel is a social network architect, web developer, infographic designer, writer, speaker and founder of DashBurst. Full-time futurist and part-time content curator, always on the hunt for disruptive new technology, creative art and web humor.


  1. This is going to be great to have Amazon to take transactions as a easy way to purchase… be interesting to see them competing against each other.

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