New “Login and Pay with Amazon” Mimics Facebook Connect – Single Sign-On Systems

October 9, 2013

in Location & Context, Mobility, Smart Retail, Strategic Foresight

Pay with AmazonWhile the headline for the linked post below is “Amazon challenges PayPal with new ‘Login and Pay’ checkout service for online retailers”, the article understates where Amazon can take their new payment approach. Amazon’s proposition to users is simple. You trust us, when you buy and then pay us. When you buy elsewhere use Amazon to make the payment and we’ll save the details. Amazon will legitimize many small retailers with this move and remove the dreaded one-time account set-up or guest sale. From a customers POV if I do business with Amazon and now with Online Retailer X then the action (which I’m now used to) is like Facebook Connect although now uses my Amazon credentials to pay. That may also imply more legitimacy for the retailer than the PayPal payment system.

See the example and then see my list of why it can go further.

Amazon apparently thinks now is the time to make its most aggressive push yet in challenging PayPal and other online payment services. Using its widgets and APIs, Amazon says online vendors can now “replace guest checkouts with recognized customers,” which will help retailers track orders, purchase history, offer special discounts, and more.  via The Verge.

Amazon is making this move to assist other online retailers with account details, payments and shipping. In itself this can really evolve in many directions. What intrigues me more is the implications this may have for taking Amazon payment systems into the real world of physical stores.

  • As Amazon already has an app on millions of mobiles a simple iBeacon could wake the Amazon app in any store and present the physical retailers offers or when appropriate the “Pay with Amazon” button.
  • Amazon’s capability to extend and share profile data, may also make the new payment affiliate more money or increase sales.
  • Equally sold items could also build up an online store under the Amazon umbrella over time.
  • Similarly, when someone has an item in hand and a complementary item that is not stocked in the store may be appealing to the customer Amazon could offer that item there and then. The store gets a commission on the online sale from their location.
  • With the right payment structure Amazon could go further. There’s
  • There’s no reason why my Amazon account isn’t also used to pay for a restaurant meal or gas in the future.

There’s an API for developers and more details on the payment structure here. Ultimately, reducing friction in making payments and lowering the cost/commission on payments will determine how successful Amazon is.

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