Amazon.com, Inc. (NASDAQ:AMZN) to launch
Amazon.com, Inc. (NASDAQ:AMZN) is preparing to launch a subscription payment service for startups and large companies. The new service steps on PayPal’s toes because it will let its more than 240 million active users to utilized stored credit card details.
Amazon.com can be used to pay for services like monthly phone bills or digital music subscriptions. Amazon charges a fee on each transaction. This lets Amazon act as a middleman for third-party sellers, which account for 40% of its sales.
“You should see it as one of many things that we’ll do to expand where people might think about Amazon helping them,” said Amazon vice president of seller services Tom Taylor in an interview with Reuters.
Amazon.com has been testing the new service with startups like Ting and Tucows. People that used recurring payments by Amazon spent 30% more on Ting’s website.