Can it succeed where the mighty Google seems to be failing?
While eBay’s acquisition of Skype hasn’t proved particularly astute, its decision to snap up Paypal certainly was with the site providing a quarter of the auctioneer’s entire revenue and now Amazon is the latest to want a slice of the online payments market…
‘Checkout by Amazon’ is an ambitious venture by the king of online retailers to leverage its existing customer base (an astonishing 81 million people) and provide a Paypal alternative that not only matches it feature for feature but also capitalises on its established ‘1-Click’ ordering system of which users are already familiar.
So what are the pluses and minuses? On the good side Checkout by Amazon is already employing a tried and trusted system (it runs all Amazon’s payments after all!), has top notch fraud protection tools and offers sellers the tools to recreate and offer customised promotions. A final bonus is existing Amazon customers who sign up to the service will find all their details automatically ported over – a nice touch.
On the downside, it will likely be a cold day in hell when eBay lets customers pay using any online tool other than Paypal and without that the chances of widespread acceptance could be limited. Just ask Google, a company hardly known for its failures, which has seen the similarly named Google Checkout struggle to catch on since its launch two years ago.
Still, Amazon has proved it can be late into the online music download market and still succeed so I wouldn’t bet against it ruffling a few feathers here either…