As 24/7 reported earlier this week, Amazon (AMZN) will begin beta testing its new Flexible Payments Service. While the product will compete with Google (GOOG) CheckPoint, it is a much bigger threat to Ebay’s (EBAY) PayPal, which should account for over $1.2 billion in revenue this year.
Amazon has the advantage that it processed almost $2.9 billion is sales last quarter, most of them retail e-commerce transactions at it websites. Amazon has also started a business to license its e-commerce, hosting and bandwidth platforms to other online sales sites. The new payment system is likely to become a component of that.
The new launch is another sign of why Wall St. likes the company so much. It has spread beyond its roots of selling books and CD to businesses as diverse as its movie download system and e-commerce licensing business.
And, now it is very likely to get a toe-hold in the online transaction business.
Douglas A. McIntyre