Amazon is reportedly working on a new strategy for mobile payments, according to The Information. The big question though is whether or not it's too late for Amazon to get in on the race in the $507 billion U.S. mobile payments market.
"Amazon in recent months approached retailers and smartphone and smartwatch makers like Samsung Electronics (SSNLF) to partner on an Amazon payment service that would work on merchants' websites, apps or in their physical stores," The Information's Amir Efrati wrote.
Amazon declined to comment for this story.
In the mean time, Apple (AAPL) and Google (GOOG) have already secured these sorts of retail partnerships, plus bank partnerships, and on top of that, they already own a large share of the device market. Amazon has a ton of catchup to do.
"The mobile wallet opportunity for Amazon is effectively eradicated as operating system-based solutions such as Apple Pay and Android Pay work their way into the market," 451 Research senior analyst Jordan McKee said. "I see very little opportunity for Amazon to go direct-to-consumer with a mobile payment solution."
With Amazon Wallet, the company made a feeble attempt at providing some sort of mobile platform, though the wallet only stored gift cards and loyalty cards as opposed to credit cards and debit cards. Amazon discontinued the product after just six months, making sure to emphasize the fact that it was a trial that provided the company with some useful learning.