Amazon To Launch Payments Services; Will Compete With PayPal and Google Checkout

from TechCrunch by Michael Arrington

Look for a launch announcement by Amazon this week or next of a new web service around payments, adding to their S3 (storage), EC2 (virtual server) and other services. They've been quietly testing the service, which will compete with PayPal and Google Checkout, for a few weeks. It is an extension of the existing Amazon Payments, which allows third parties selling items on Amazon's extended network to receive payments from buyers.

We hear that for now at least this is a redirect service only, like Google Checkout. Users will be redirected to Amazon's servers to complete the payment and then returned to the original site. PayPal also offers an integrated solution that allows users to remain on the original ecommerce site, an attractive feature for larger partners. The service will also allow sites to use Amazon to manage payments between users, and receive confirmation of transactions. This will be particularly useful for the new crop of online money management services.

PayPal, owned by eBay, still dominates this space, and the spats between them and Google are becoming legendary.