Rumor has it that Amazon is planning to launch some type of e-commerce business to allow payments and money transfers which will compete with PayPal. Some of you probably know that Amazon already has their Amazon Payments service that allows you to send and receive money, and shop with your mobile phone, but it’s limited to Amazon and “their partners.”
From the sounds of it, Amazon’s solution would be more widely used around the web than the current Amazon Payments, or at least that would be the goal. Analyst Derek Brown talked about it recently and said that Amazon “may soon launch a PayPal-esque payments service for use by consumers and merchants across the web, potentially siphoning growth and/or profit from eBay’s crown jewel.”
We’re not sure exactly what Amazon will do to expand Amazon Payments and compete with PayPal but it might be welcomed. Some people are frustrated with both eBay and PayPal for various reasons and are looking for an alternative way to make payments online. With a name like Amazon backing a service, they could potentially gather-up some loyal users.
Analysts say the service could launch late Summer or early Fall, so we’ll be keeping our eye for more details in the coming weeks…