|Wed Jan 29 2014 21:21:31|
Could Amazon Give PayPal a Run for the Money?
By: Ina Steiner
The Wall Street Journal reports Amazon is working on a checkout system for brick-and-mortar retailers that uses Kindle tablets, according to "people briefed on the company's plans." However, it's not a sure thing - "the project might be delayed, altered or canceled."
There's also been talk that Apple is working on a payments service, and Tech Crunch said Amazon is also working on a P2P feature for its payments service to let people send money to each other.
eBay and PayPal are jointly going after the physical retailer - you can pay for purchases with PayPal at The Home Depot stores, for example. eBay is fond of saying it's not a competitor to retailers, it's a partner, while Amazon is clearly both.
What would induce brick-and mortar stores to open their checkouts to Amazon? Mobile is one reason - consumers will increasingly expect to be able to use their smartphones to pay for goods at B&M stores. But just as people carry multiple credit cards, why suppose there will be only one payment option in the digital wallet?
The Wall Street Journal said Amazon has considered allowing retailers to offer promotions or discounts through Amazon.com or its Amazon Local daily deals offers to entice them to use its checkout service. It quoted Richard Crone, CEO of Crone Consulting, a payments advisory firm: "At the end of the day, a merchant wants to make a sale, to drive up business. And if Amazon or anyone else can help them do that, that's tough to turn away."