Amazon (AMZN) - Get Amazon.com, Inc. Report today announced a new platform to drive adoption of its payments solution. The Amazon Payments Global Partner Program is meant to help retailers integrate Pay with Amazon on their websites so that Amazon customers can pay easily across the Internet.
For now, the platform is available by invitation in the U.S., Germany, UK, and Japan, and it is free to participate in. Members of the platform will be able to use services and tools like account management, planning support, technical resources and training, Partner directory listing, Partner designation with exclusive logos, and certain Partners may also be eligible for co-marketing activities.
"The Amazon Payments Partner Program provides Partners with the tools and resources needed to extend the trust and convenience of the Amazon experience to their merchant customers," Patrick Gauthier, vice president of Amazon Payments said in a statement.
Some of the partners already participating in the program are Shopify, PrestaShop, and Future Shop.
"Amazon Payments is a natural extension of their ecosystem strategy," said Greg Portell, a partner in A.T. Kearney's Consumer Products & Retail and Media Practices. "Removing additional friction from online and mobile commerce fits very well with Amazon's previous moves. Additionally, the service extends Amazon's push into offering third-party services. Competitors should have been anticipating this type of move."
However, not everyone is convinced that retailers will jump on this opportunity.
"It's hard to imagine any large retailer would be shortsighted enough to display the Amazon brand at the most pivotal moment of the shopping journey," said 451 Research analyst Jordan McKee. "Most tier 1 and 2 merchants have deep- rooted skepticism of Amazon's ambitions in the payments space."
As proof, McKee pointed to Amazon's current merchant roster for Pay with Amazon, which includes mostly businesses and brands that do not directly compete with Amazon, such as Southwest Airlines or Fathead.com.
"Pay with Amazon will always be relegated to small businesses, and retail verticals that remain somewhat distant from Amazon's core business," he said.
Larger merchants won't want to enable "their arch rival with profits," Moor Insights and Strategy president and principal analyst Patrick Moorhead explained.
PayPal is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio.
Exclusive Look Inside:
You see Jim Cramer on TV. Now, see where he invests his money and why PayPal is a core holding of his multi-million dollar portfolio.
Want to be alerted before Jim Cramer buys or sells PYPL?Learn more now.