This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Here's How Amazon Is Going After eBay's PayPal

NEW YORK (TheStreet) - Amazon (AMZN - Get Report) added a consumer billing option on Monday, its latest attempt to cut into rival eBay's  (EBAY - Get Report) 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.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AMZN $370.21 -0.51%
EBAY $57.01 -1.20%
AAPL $123.96 -0.38%
FB $81.50 -0.87%
GOOG $543.43 -0.83%

Markets

DOW 17,675.76 -100.36 -0.56%
S&P 500 2,055.47 -12.42 -0.60%
NASDAQ 4,861.9930 -38.8920 -0.79%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs