Wednesday, August 01, 2007

Amazon Payment System Rumor

Techcrunch posted a rumor today that Amazon is working on a new payment system similar to Google Checkout. Well apparently everyone is talking about it. If it is true, then eBay should be very concerned. PayPal's growth and its future are based in transactions outside of eBay. They already have to contend with Google Checkout in that space so now if Amazon launches their own service things get complicated.

Amazon understands transactions, so this gives them an advantage over Google but I don't see them as being much of a threat to eBay's PayPal. As long as eBay protects PayPal's ownership of the Golden Calf (eBay marketplaces) they will continue to hold a commanding lead in the payments biz. Amazon's entry may slow down PayPal's growth though and that will raise concern with investors.

Instead of gathering all of the posts on the Amazon payment system, I've collected them in my What Am I Reading" links in the right side bar.

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