Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Wed Jan 29 2014 21:21:31

Could Amazon Give PayPal a Run for the Money?

By: Ina Steiner

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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."




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Perminate Link for Could Amazon Give PayPal a Run for the Money?   Could Amazon Give PayPal a Run for the Money?

This user has validated their user name. by: Ming the Merciless

Wed Jan 29 23:07:53 2014

Bezos just made another strategic move in the chess match. Or maybe he's playing poker.

Chances are whatever Bezos does will be right and whatever The Ho does won't.

Perminate Link for Could Amazon Give PayPal a Run for the Money?   Could Amazon Give PayPal a Run for the Money?

by: comet This user has validated their user name.

Wed Jan 29 23:56:56 2014

Really---can some one EXPLAIN to me WHY we NEED so many different payment methods?  Is it to corral the money you MAKE on  Amazon and THEN spend it---passing on ever MORE of your income to them?  Same with Paypal?  

I laugh  when I see the Paypal claim that Oh woweeee ka zooowee you can pay for stuff at Agent Orange with OUR payment arrangement---well golly gee willikers I have a Paypal Debit card and can buy anything I WANT anywhere it is accepted--which is pretty much damn near ANYWHERE now that so many people have the gadgets on their Smartphones.  And I have a bank card and a credit card just in case.  

I will say tho that Amazon seems to THINK they don't accept Paypal--but I have been paying for things FROM AMAZON with the PP Debit for years now.  

Course I have been embroiled with Amazon on a refund for over a month now and they keep telling me they don't accept payment FROM Paypal so I could NOT have paid this way---gee funny Paypal says they WERE paid that way----

Maybe it's just ME.  

Perminate Link for Could Amazon Give PayPal a Run for the Money?   Could Amazon Give PayPal a Run for the Money?

This user has validated their user name. by: TraderBoo

Thu Jan 30 01:27:47 2014

Competition is good to reduce fees. Paypal needs a good competitor as well ebay.

Perminate Link for Could Amazon Give PayPal a Run for the Money?   Could Amazon Give PayPal a Run for the Money?

by: Moonwishes This user has validated their user name.
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Thu Jan 30 09:01:15 2014

>>Really---can some one EXPLAIN to me WHY we NEED so many different payment methods?<<

As someone from the dark ages that doesn't even HAVE a cell phone or a tablet, why would I want all these ways to pay? I too carry cash or a choice of credit cards. It seems to be that the easier they make it to pay with gadgets the easier it will be for the scammers to grab your money at the same time. It just baffles me that people would want to use these various ways to pay for things. Are we really so very busy that we don't have time to take a wallet out of our pocket or purse to pay for something?

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by: Mr. Me This user has validated their user name.

Thu Jan 30 11:36:16 2014

Cash is the only safe secure way to pay, it is convenient, doesnt require batteries, and there is no 3% fee involved to load down the entire system.

Perminate Link for Could Amazon Give PayPal a Run for the Money?   Could Amazon Give PayPal a Run for the Money?

by: Orwellwasright This user has validated their user name.

Thu Jan 30 11:44:13 2014


By Definition paypal is Malware
A fourth party parasite which interjects itself between the buyer, their payment, and the seller

This malicious parasite is FORCED on us by eBay and we have no choice except to accept the fees and their policy of sticking sellers with fraudulent buyers

Why anyone would voluntarily invite this malignant tumor into their transactions is inconceivable

Any HONEST processor would drive them out of any Market Instantly

Perminate Link for Could Amazon Give PayPal a Run for the Money?   Could Amazon Give PayPal a Run for the Money?

This user has validated their user name. by: Philip Cohen
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Thu Jan 30 14:19:27 2014

Amazon/Apple/Whoever Payments

Amazon Payments, Apple Payments, Whoever Payments—online or at physical point of sale—they all suffer from the same severe handicap that “PreyPal” suffers: none have direct, dynamic access to retail banking debit accounts, nor retail banking credit accounts as do the MasterCard and Visa “bankcards”; their only access to funds is as retail bank credit card merchant account operators (which is what “PreyPal” claims to be when it wants to appear to be not operating as a “bank” in its own right) via their own retail bank (Wells Fargo in the case of “PreyPal”).

Even if these middlemen make use of direct debits via the ACH system (as “PreyPal” prefers to do) to more cheaply access buyers’ funds, the access is not dynamic: there is no immediate approval response from the bank nor any guarantee that, the following day, the bank won’t reverse the debit due to an insufficiency of funds; direct debits via ACH are simply not suitable for physical point-of-sale transactions; the only safe route for point-of-sale transactions (credit or debit) is via a retail bank Merchant Account with its dynamic linking to the banking system …

Regardless, these “pretenders” are all parasitic middlemen; a superfluous additional layer, in the main, riding precariously on the back of the retail banks’ existing systems; they make their money out of the difference between what the banks/MasterCard/Visa charge them and what they then charge their merchant customer; therefore, their services, invariably, are going to be dearer, or are unlikely to be cheaper; anyone that thinks otherwise has been drinking too liberally and literally of the disingenuous nonsense that continually flows from the eBay Dept of Spin …

“PreyPal”, however, is unique in that it operates an unlicensed “pretend” bank—the “bank” they have to hold onto people’s receipts, and the bank they don’t have when the banking regulator comes sniffing around. That “PreyPal” manages to skirt around US banking regulation while operating this clunky, unregulated, non-FDIC-insured, “pretend” bank, frankly, defies belief; it’s probably the same bureaucratic laziness/corruption that allows eBay to knowingly and calculatedly facilitate blatant, massive, auction fraud on the consumers of the world …

Regardless, if any of these middle-men players think that they are going to take other than micro-fractions, if any, of the payments market away from the “bankcards”, MasterCard and Visa, I think that they have been poorly advised, or maybe they have once too often accompanied the hallucinating Johnny Ho on some of his many trips with Alice down the rabbit hole to Wonderland …

Anyway, with the recent arrival of the “professional” digital wallets from MasterCard and Visa, all these other pretenders (with the exception of where they are effectively mandated/integrated into an online marketplace) are now effectively redundant …

And, with respect to physical point of sale in particular, how many times does it have to be suggested, next time you visit The Home Depot, ask a cashier how “Pay Here With PayPal” is going—LOL … http://bit.ly/UVXx53

Hello "MasterPass"; goodbye clunky "PreyPal"—it has not been nice knowing you ...

@comet, The “PreyPal” branded DEBIT card is in fact a MasterCard DEBIT card; to the accepting merchant (Amazon) the “issuer” of the card is an irrelevance—that it is a MasterCard (or a Visa card) is all that matters; and even then, if you read the micro print, you may find that it is not “PreyPal” but the Bancorp Bank of Utah that is the actual issuer …

Perminate Link for Could Amazon Give PayPal a Run for the Money?   Could Amazon Give PayPal a Run for the Money?

This user has validated their user name. by: Ming the Merciless

Thu Jan 30 15:14:41 2014

Adding unnecessary layers of "service" for the purpose of generating revenue has been going on for years as American slept.

How many revenue generating layers have been added to blockbuster movies after their theater runs have ended?

They used to be free shown by the various networks on their movie night.

Then came HBO and video recording devices which changed the landscape again, and Americans paid to watch movies not too long after the movies were no longer in theaters.

Today with everything on demand, DVDs, it now takes a year for many films to reach HBO and we're paying higher subscription fees than ever before for a lower level of service.

This is what corporations have done a thousand times over in many different arenas to create wealth for themselves at our expense.

And most of us sit back and let it happen because we're too busy watching Super Bowl Hype and the Duck Dynasty frauds to notice.

PayPal was ahead of its time and initially offered good value for the extra layer it inserted between bank/card issuers and the consumer. Their money market payouts were excellent and could mean that those who kept funds in their PayPal account could actually make good money by doing so.

Then came The Ho and his monetization march. Today ayPal adds no value whatsoever for its users. It's convenient only because ebay makes it virtually mandatory.

The mega greedy Ho has for all intents and purposes destroyed all added value for users and therefore the incentive to even shop on ebay.

This b school and Bain failure has never been able to grasp the concept that when sellers thrive in an honest manner ebay would thrive as well.

Instead he prefers to lie, cheat, and steal from his customers by any means necessary which will guarantee the success of alternate payment systems when someone wants to use an alternate payment system.

Perminate Link for Could Amazon Give PayPal a Run for the Money?   Could Amazon Give PayPal a Run for the Money?

This user has validated their user name. by: Rexford

Fri Jan 31 07:42:25 2014

Ming says "Today with everything on demand, DVDs, it now takes a year for many films to reach HBO and we're paying higher subscription fees than ever before for a lower level of service."

Not me. I cut the cord a while back (buh bye Comcast) and I've never been happier. Local channels, a Roku and Netflix are all I need.  Of course with the greedy internet service providers wanting a piece of the action and wanting to put an end to net neutrality (Verizon, AT&T) I look for my Netflix subscription to go up.  If it goes up substantially I'll likely dump it.

One can also blame sports channels for driving up the cost of cable subscriptions substantially.

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by: lisa Behrens This user has validated their user name.
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Wed Feb 5 03:10:53 2014

every time phil says prey pal, instead of pay pal (like serious intelligent people do) we get to take a shot.

Perminate Link for Could Amazon Give PayPal a Run for the Money?   Could Amazon Give PayPal a Run for the Money?

This user has validated their user name. by: Philip Cohen
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Sun Feb 9 00:57:24 2014

“Federal regulators called to action on nonbank payment companies”

“Community bank members of the Federal Reserve’s Community Depository Institutions Advisory Council told the Fed not to delay regulatory oversight for companies like Paypal, …”

http://www.northwesternfinancialreview.com/issue/northwestern-fina
ncial-review/article/federal-regulators-called-to-action-on-nonbank-payment-companies


And, when they refer to “nonbank” they are referring to all those clunky, unlicensed, unregulated, payments middlemen (like “PreyPal”) that are not “licensed financial institutions”, ie, not licensed to provide credit to consumers.

There are many good reasons for this licensing and regulation of such institutions, but the principal one is to subject them to statutory obligations to, and stop them unfairly treating, consumers, as “PreyPal” demonstrably too often does …

No doubt, Johnny Ho will not be pleased with such a call; then, the potential negative impact on eBay of such a possibility is discussed in eBay’s SEC 10-K filings; not that many of the dopes investing in eBay would have noticed …



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