Since 2007, Amazon has entered the world of online payment services to compete with powerhouse PayPal with their own version called Amazon Payments. This service allows sellers and buyers to use payment methods for sending/requesting money, adding funds, and making purchases of goods, services, and even purchasing through third-party websites. Although PayPal still reigns supreme, Amazon is setting its sights on PayPal’s hold over alternative payment solutions and looking to become the #1 online payment services in the world.

Did you Know? Amazon.com originally invested in the popular instant credit service “Bill Me Later” before eBay (Owner of PayPal) acquired them.

Amazon Payments is a payment engine that allows users to make purchases from your website or storefront using their Amazon customer ID. Amazon Payments keeps all financial information private from sellers and Amazon Payments offers the same trusted payment experience that is currently available on Amazon.com. To use Amazon Payments you must first have an Amazon account, but once activated, you can make payments on any third-party website that accepts Amazon payments. Also, Amazon Payment offers users the flexibility to use credit cards associated with their Amazon account and even make payments and receive them through their bank account just like PayPal. Amazon Payments accepts verified U.S. bank accounts, credit cards, and transfers from your available Amazon Payments account balance. Credit cards currently accepted include Visa, MasterCard, Discover, American Express, Diners Club, and JCB.

To tighten up the competition, Amazon has even created Amazon Checkout, which rivals with PayPal and Google Checkout, as being a one-stop shop for payment and checkout options on your retail website or storefront. You can also integrate Amazon Checkout and Payments with your own storefront and website that lets you automatically save your customer’s data for quick processing and one-click purchases. What makes Amazon Checkout so innovative and appealing is not only do they not charge any monthly or hidden fees (Fees are based on a percentage of the transaction amount plus a per-transaction fee), but they offer tons of seller protection! Yes, we said it– Seller Protection! So if you ship your product to the provided address from the customer and use a trackable method, you’re covered. Stop fighting off month old refunds and get the coverage you’ve been looking for. Although Amazon Checkout is currently only available to sellers in the U.S, Luxembourg, Great Britain, and Germany, Amazon is working on creating the most efficient and powerful online payment service in the world.

What do you think of Amazon Payment and Checkout rivaling PayPal? Do you think Amazon can become the #1 online payment services for all online merchants? We want to hear your suggestions. Send emails to nick@amazongenius.com