Amazon continues to expand its services in the area which today still dominates Paypal and other companies specializing in online payments. According to Reuters, Monday, Amazon starts a new payment service, which will allow startups and other companies allow recurring payments, with the idea that third party services allow their users from paying their telephone bills to the paid subscription to listen to music, to name a few examples.
These companies take advantage of the fact that Amazon has over 240 million active users per month who have stored their credit card information on Amazon.com, serving advantage when they make their payments on third party services, the which may be more leery to supply such information from their bank cards. In this regard, recall that last fall, Amazon launched its login and Amazon payments, which allows third parties associated services that customers pay through Amazon, taking advantage of the same benefits.
Therefore, the launch of this new service can be seen as an expansion of third-party payment service associated services that Amazon launched last fall, competing more closely with Paypal and also other services like Google Wallet, Braintree and Stripe.
Interestingly, according to the report itself, comes days before it was expected the first smartphone from Amazon, which is expected to be shown on June 18 in a few days longer haul.
This new service has already been tested in recent months by a number of companies, including Ting, mobile phone company owned by Tucows Inc. Amazon charged a fee for each transaction, thus representing a new revenue stream.