Amazon plans PayPal competitor!

Could the Amazon’s next move be to go after eBay subsidiary PayPal’s dominant franchise on online payments? Amazon has been aggressively rolling out a variety of web based services, including on-demand computing power and data storage. Analyst Derek Brown asserts in a research note that Amazon “may soon launch a PayPal-esque Payments service for use by consumers and merchants […]

Could the Amazon’s next move be to go after eBay subsidiary PayPal’s dominant franchise on online payments? Amazon has been aggressively rolling out a variety of web based services, including on-demand computing power and data storage.

Analyst Derek Brown asserts in a research note that Amazon “may soon launch a PayPal-esque Payments service for use by consumers and merchants across the Web, potentially siphoning growth and/or profit from eBay’s crown jewel.” Brown says that Amazon could launch such a service as soon as late summer or early fall of this year.

“We believe an Amazon Payments solution for use across the Web holds real promise,” he writes. Brown contends that Amazon “long-ago demonstrated that it understands (perhaps better than any company) the needs/wants of online retailers.” And he also says the company understands - maybe better than any company - the needs and wants of online buyers. “Coupling this pool of knowledge with its massive customer base, powerful technology platform and unique skills sets, Amazon.com may be among the best-positioned Internet companies to attempt to challenge PayPal’s growing dominance.”

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Source:→ TechCrunch