Amazon goes head-to-head with PayPal as it launches an online-payment option that allows Amazon users to purchase goods from other websites with just the click of a button.
This new feature - called “Login and Pay with Amazon” - allows more than 215 million active Amazon customers to use the credit information stored in their Amazon account at participating online merchants. Much like how the PayPal payment option works - you simply press a button and enter your Amazon username and password for a quicker checkout experience.
“Login and Pay with Amazon enables companies to make millions of our customers their customers by inviting online shoppers with Amazon credentials to access their account information safely and securely with a single login,’ said Tom Taylor, Vice President, Amazon Payments.
Amazon says its new payment option is covered under its “A-to-z Guarantee,” giving its users the same protection they would find at Amazon.com.
If you’re looking to use Amazon’s new feature for your online store– it will costs you a 2.9% fee, plus 30 cents, for each transaction.
GoGo, an in-flight wifi service, is one of the first to adapt this new payment option. They already use Amazon’s basic payments service, but plan on adding “Login and Pay” later this year.
This is a giant leap for Amazon Payments, putting it up against some of the biggest players in the industry. Do you think Amazon will be able to absorb PayPal’s customers and become the leading payment processor?
Check it out for yourself: