|Tue July 25 2017 15:35:18|
Would You Use Amazon Instead of PayPal?
By: Ina Steiner
A Wall Street analyst believes Amazon may be readying a PayPal clone. Amazon is already pushing merchants to accept its Amazon Pay service on their websites, and Bernstein analyst Lisa Ellis believes the marketplace could expand it in the next several years.
quoted Ellis: "This scenario involves taking a page out of the book of what eBay did with PayPal and Alibaba did with Alipay, and building up independent wallet service based off of the Amazon Pay wallet," Ellis wrote in a note to clients Tuesday. Such a service would be of concern to Visa and Mastercard "specifically if consumers start storing their money in the Amazon Pay wallet and not in their underlying checking accounts."
Many small sellers like using PayPal so they don't have to go through the process of getting a merchant credit-card account, and when they're paid, they can store the funds in their account and use it to pay bills or fund purchases.
That would be true of a PayPal-clone from Amazon, except for one major drawback: sellers wouldn't be able to use it on eBay.
If Amazon had a comparable service, would you use it instead of (or in addition to) PayPal? What features and policies would it have to offer merchants and consumers to make it an appealing option (i.e., dispute resolution, funding methods, etc.)?