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I'd guess that Amazon gets very very low fee rates for payments. Amazon's not going to start competing with Visa, and it seems unlikely they'd be a bank, so I d

I'd guess that Amazon gets very very low fee rates for payments. Amazon's not going to start competing with Visa, and it seems unlikely they'd be a bank, so I doubt there's a huge amount of profit to be made in taking over their own payments processing.

jjallen 13y ago
Why wouldn't they compete with everyone that is a material cost to them? 10 basis points on their revenues is already approaching $100M/year. My guess is they pay quite a bit more than 10 basis points too (spent a while looking for reliable source to corroborate this but couldn't find one). AMZN seems to want to do everything they can to expand and lower their costs; I don't know why credit card fees would be excluded from this. They could develop a completely novel solution over time. My guess is they will become much more serious about payments over time because of articles like this[1] and this[2]. [1] http://recode.net/2014/04/12/jeff-bezos-to-amazon-payments-team-go-faster/ http://recode.net/2014/04/12/jeff-bezos-to-amazon-payments-t... [2]http://techcrunch.com/2014/01/29/amazon-wants-to-include-peer-to-peer-payments-in-its-real-world-paypal-competitor/ http://techcrunch.com/2014/01/29/amazon-wants-to-include-pee...
revnja 13y ago
If they did this, I would want them to branch out Amazon Payments to be a PayPal competitor. I would switch in a heartbeat. PayPal has incredibly high fees and unfortunately, is a necessary evil for me. I'm uncomfortable leaving any amount of money sitting with them.