) has announced the launch of a new online payment option, "Login
and Pay with Amazon", that will allow shoppers to make purchases
on websites by logging in with their regular Amazon account
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This new payment option is believed to combine various payment
options that shoppers already have access to on Amazon. So far,
users that have signed up for an Amazon account and entered their
respective credit card and shipping information with the company
could buy things on Amazon's website using this payment option.
But following the launch of the new service, shoppers can pay for
purchases on third-party retail websites as well by using their
Amazon logins and accounts. This eliminates the need to
separately enter their account details for each purchase made at
any third-party retailers. Amazon will collect a 2.9% fee, plus
an additional 30 cents for each transaction from these
third-party sellers. However, Amazon is not willing to share user
credit card information with participating merchants, which may
reduce the system's popularity among merchants.
With the launch of "Login and Pay with Amazon", Amazon has posed
a direct challenge to
) PayPal. This move is believed to be in response to PayPal's new
option for in-store payments, using advanced bar codes on mobile
phones or special password codes.
Amazon has gone on to become a veritable consumer electronics
giant from being an Internet retailer. The company recently
refreshed its Kindle Fire tablets, but other models are expected
in the next few months. But Amazon might not stop there. If the
rumors are to be believed, the company has many more devices in
the works, including a smartphone, an audio streaming device, and
) TV competitor.
Amazon's hardware competes with both Apple's and
), although competition with Google is fiercer, since Amazon has
adopted Google's Android operating system, but not Google Play.
Further, Google is entering its core market with product search
ads and Google Shopping.
Currently, Amazon has a Zacks Rank #3 (Hold).