Amazon Introduced PayPal Killer Payment Service.

Amazon has taken on the online payment arena. Not eager to share the payment processing fees collected by Paypal, the Internet giant launched its "Login and Pay with Amazon" system.

Safe & Speedy Checkout

According to Amazon, the new system negates the need for multiple accounts. Instead of customers digging through purses looking for the right card or combing through memories for another password, consumers can simply enter a single username and password. Then customers can pay using the information already stored in their Amazon account. The service safely works on thousands of sites in addition to Amazon. Purchases are covered by the same protection plan as they are on Amazon.com.

Sending & Receiving Money

Like Paypal, the new Amazon service allows consumers to send and receive money to anyone who has an email address. Consumers who have been sent money receive a notification in their email box, and they can opt to have the money transferred to a bank account or left on their Amazon account. Consumers also have the option of requesting funds from each other.

Easy to Use

CBS News reports that early tests of the program have been extremely successful. Amazon has done an amazing job of integrating the new payment method into multiple websites, and consumers have been eager to use it. It currently works with 13 third-party e-commerce or shopping cart vendors. Amazon explains the consumer adoption rates of the new payment method have exceeded expectations. The payment method can be used on desktops, tablets and smartphones across nearly all platforms. The checkout process has been mobile optimized, making it especially easy for consumers who prefer to shop on their phones.

Login & Pay

Using the Amazon payment method is easy and intuitive for customers. If a gaming customer is interested in buying a product like BF4, the process is simple and may even be easier than using a credit card.
Once a shopper has signed into their BF4 account and hit purchase, they are directed to a payment screen. There, they can select from a number of payments methods including credit card, PayPal, EA Wallet Balance, or Amazon. Customers who choose Amazon will be directed to a second screen where they are prompted to enter their Amazon username or affiliated email address and password. Once they hit enter, the purchase has been made. They simply need to wait for the product to arrive in their mailbox or, as in the case of BF4, download to their computer.

Vendor Benefits

Amazon joined the game to make money on transactions fees and to ensure they can benefit as much as possible. The company has set its rates very similarly to PayPal's rates. For vendors who collect less than $100,000 per year, Amazon plans to charge 2.9 percent of each transaction as well as a $0.30 transaction fee. Vendors who top the $100,000 mark get their fees automatically reduced to a 1.9 percent charge and a $0.30 transaction fee. It's done automatically and boosts Amazon ahead of the competition. PayPal's vendors, in contrast, have to call a toll free number and negotiate a rate once they exceed $100,000 in sales. Whether small victories like this will be enough to propel Amazon to the head of the online payment world has yet to be seen, but it should be an interesting race.