Amazon announced its new Amazon Payments Partner Program on Monday that will allow companies, including merchants big and small, to team up with Amazon to offer payments using the company’s existing system. It could be bad news for PayPal and other firms that have similar systems.
Amazon’s Payment Partner Program will launch first in Germany, Japan, the United Kingdom and the United States and provides a complete set of tools for e-commerce sites that cater to merchants. One example is Prestashop, which allows businesses to create e-commerce options for their existing websites. Prestashop can then easily provide its customers with an option to use Amazon Payments at checkout, providing an easier experience for consumers and valuable analytics data to merchants.
This is an area where plenty of other businesses, such as PayPal, already operate. But Amazon can quickly become a dangerous force in the payments industry given its large existing user base, trusted brand and partnerships with Prestashop and Shopify.