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Amazon Launching Own Online Payment System

Amazon is expanding their online payments with “Login and Pay with Amazon.” The system will allow merchants to loop into the Amazon customer base, which is estimated at 215 million users. You’ll be able to login with the system like Facebook login, so you won’t have to create a new account with the merchant. The only information the merchant will get to see is the shipping address so your credit or debit card will safely be stored on Amazon’s servers and never charged by other third parties. Amazon’s A-to-z Guarantee will come along with this service, and merchants will receive low fees along with fraud protection at no extra cost.

The system is based on Oath 2.0 so many e commerce platforms will be able to easily integrate the service. This is similar to Paypal’s offering, though you won’t have to deposit money into your Amazon account or worry about other little charges incurring. It’s like buying off of Amazon, but just a different web address. This will give Google and Paypal a lot of competition considering so many people trust Amazon with their banking information.

“So far, the consumer adoption rates that we’ve been seeing with Amazon Payments have exceeded our expectations and we’re excited to see the results once we start offering our customers the bundled solution of Login and Pay with Amazon towards the end of this year,” said Ash ElDifrawi, Gogo’s chief commercial officer. “We know that Amazon buyers are highly satisfied with their payment experience on Amazon. We also know through our research that Gogo users want alternative methods of payment. By offering Amazon Payments, we are providing Amazon customers an easy way to pay for Internet access on Gogo.”

We should see this before the holiday season, however Amazon did not give a timeline when we could see developers integrating this into sites. Will you start using the Login and Pay with Amazon service or will you keep trusting services like Paypal? Tell us your thoughts in the comments below.