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Amazon Launches Payment Services Alternative To PayPal

Amazon announced the availability of new online-payment services it will offer to online merchants, Checkout By Amazon and Amazon Simple Pay.

Amazon Simple Pay, Checkout By Amazon

Checkout By Amazon

Checkout By Amazon is a complete checkout solution. It lets web site visitors sign in to web sites using an Amazon Account login and buy items using the familiar Amazon’s 1-Click® button. Checkout By Amazon service provides tools for businesses to manage shipping charges, sales tax, promotions, and post-sale activities including refunds, cancellations, and chargebacks..

Amazon Simple Pay

Amazon Simple Pay is a service that allows consumers to use their Amazon account information to pay for purchases on other web sites. It is for those merchants who don’t need sophisticated checkout and order management capabilities, but who would like to incorporate Amazon’s customer login system to sell products.

Amazon Simple Pay differs from Checkout by Amazon in that Checkout by Amazon provides additional capabilities to support real-time shipping and tax calculation, promotions, and order management-tasks including order cancellations, order reports and shipment tracking. If you don’t need Amazon’s end-to-end checkout pipeline and order management capabilities, but still want to enable your customers to use their payment information already on file at, use Amazon Simple Pay.

Amazon also offers the Amazon Flexible Payment Service, a developer-oriented money-transfer API, which is currently in limited beta testing mode.

Checkout By Amazon competes with PayPal and Google Checkout. The Amazon service costs 2.9% + $0.30 per transaction for transactions of $10 or more. Transactions less than $10 cost 5% + $0.05 per transaction.

Google Checkout costs 2% + $0.20 per transaction. PayPal charges on a sliding scale, starting at 2.9% + $0.30 per transaction for monthly sales up to $3,000.

The key differences between Checkout by Amazon, Amazon Simple Pay, and Amazon’s Flexible Payment Service are summarized in this comparison chart.

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