Amazon expanded its payment service to lead the payment industry and lure a large number of shoppers towards its platform.
More buyers would soon find a convenient method to spend online instead of using a credit card, easily entering the password and user name of Amazon.com. On April 4, 2016, the American e-commerce company announced an extension of its payment service, Amazon Payments, as it competes with other payment intermediaries, including Apple Pay and PayPal.
Online traders can already avail the payment facility by typing their account details of the website instead of their payment information, addresses and names. The extended program will turn into “Pay with Amazon”, an option offered to merchants who develop their webpages on e-commerce platforms developed by companies that mostly help merchants run and establish their own e-shops.
In its announcement, Amazon named three participating platforms – Shopify, Japan’s Future Shop and French e-commerce company, PrestaShop SA - though more are registered on the website of the company.
The program could make Payment Service an option for many online sellers. Shopify also reported its network is home to over 240,000 shops. For sellers, permitting customers to spend using just Amazon.com account details, could make checking out easier and quicker, possibly leading to extra sales.
In February, Southwest Airlines announced that it was including a payment service option for entertainment purchases and in-flight Wi-Fi, citing convenience as an important attention.
For Amazon, more sales transactions processed through its financial service lead to more sales revenue. The company charges sellers 2.9% of every transaction – a little over 2.75% charged by Californian organization, Square, along with 30% fee.
Analyst from Wedbrush Securities, Michael Pachter, said the extra fees are appealing to the company because it does not need to develop any new thing to earn them. Amazon has unsuccessfully make efforts to extend its financial service provider before. Two years ago, it launched physical card reader, Amazon Local Register, which connected to tablets and smartphones.
Intended for small conventional shops, the device was a direct rival to Square, which provides a card reader that attaches to cellular devices, but it was unable to succeed, and the company scrapped it in late 2015.
Some sellers have voiced their concern that using the web retailer’s physical card reader would leak out what its customers were purchasing – the same type of data that has currently helped the e-commerce marketplace operator turn into a challenge to offline businesses and juggernaut.
As the financial service extends, it is not clear if online sellers will find the same challenge or if they will add any extra value to the service, says brokerage service provider’s analyst, Robert W. Baird.
No comments:
Post a Comment