Amazon takes on PayPal and Google Checkout with new payment service | InternetRetailer.com

Amazon this week unveiled two payment services, Checkout by Amazon and Amazon Simple Pay, which enable other e-retailers to process payments through Amazon. Checkout by Amazon includes some features, such as shipping and tax calculation and order management services, which Amazon Simple Pay does not. Amazon has been testing the payments services since last summer.

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The biggest draw of these new payment services will be the 81 million consumers already familiar with checking out on Amazon. This is likely to attract small and mid-sized retailers, but bigger players will stay away because they view Amazon as a competitor.

Another concern for all retailers considering the service, is that Amazon will use the data it collects about what’s selling to enhance its own product offerings. An Amazon spokesman replies, "We simply plan to use the data to improve the service for our merchant customers."

InternetRetailer.com - Daily News for Wednesday, July 30, 2008