NEW YORK (TheStreet) - Amazon
(AMZN) added a consumer billing option on Monday, its latest attempt to cut into rival eBay's
(EBAY) PayPal, the leader in the lucrative payments services marker.
The online payment feature, which allows for automatic payments of fixed or variable amounts within Login and Pay with Amazon service was first reported by Reuters, but confirmed by an Amazon spokeswoman. "This opens up Login and Pay with Amazon to other types of subscription-based business models, companies who want to make Amazon customers their customers, back payments with the A-to-Z guarantee and use transparent and low payment processing," Amazon spokeswoman Julie Law said via email.
The option will allow Amazon's 240 million active users to use credit card information stored on the company's Web site to pay for a variety of services, including monthly bills, such as cell phone services, to subscription fees for online products like digital music through this automatic payment option.
Ting, a small mobile carrier and mobile product provider, was the first company to use the service, Law said. Ting "experienced pretty impressive results in the first few months they tested Login and Pay with Amazon including high conversion rates -- customers choosing to use Amazon over other payment methods," she said. PeachDish.com, an Atlanta-based upstart that delivers weekly meal service, is now using Login and Pay with Amazon as its only feature of payment, she adds.
EBay's PayPal has been the leading service for online payments to date. The new payments feature comes as Amazon gets ready to reportedly unveil its own smartphone device. Amazon is holding a press conference in Seattle on June 18.
Amazon's automatic payment is an additional feature to Login and Pay with Amazon which gives uses the option to pay with the credit or debit card information filed on Amazon on third-party sites for single purchases. Users can manage their information and view recent billing on the Amazon Payment Web site. Adding the ability to automatically pay for reoccurring services makes the Web site a one-stop-shop for payments online, the company said.
Amazon shares fell 1.1% trading at $325.93.
-Written by Kathryn Mykleseth in New York.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV