Amazon introduces new service that may be attractive to mobile consumers
Amazon may soon become serious competition for PayPal as the company begins to manage subscription payments for startups and small companies. Amazon is growing bolder in its e-commerce efforts and the company is hoping to capture the support of the mobile audience with its new ventures. The company has launched a new service that will allow its 240 million active users to use their financial information stored on Amazon.com to pay their bills online and manage their subscriptions.
PayPal may soon see some serious competition come from Amazon
For years, PayPal has been the leader in this sector, allowing consumers to pay for subscriptions and other services in a convenient fashion, using whatever financial information they have opted to store on PayPal. Amazon has slowly been entering into this field, hoping to meet the growing demand coming from consumers regarding more diversity in the payment services that they use on a regular basis. Amazon’s growing focus on mobile commerce is likely to help its new service win support with mobile consumers.
New service could be a hit with the mobile crowd
Amazon has been testing its new service over the past several months, working with startups and merchants that are interested in connecting with mobile and digital consumers. Those that opted to manage their subscriptions and services through Amazon were likely to spend more money on the products that they favored. In some cases, those using the service spent 30% more on the brands that used the service offered by Amazon.
Competition in the mobile space is growing more aggressive
Engaging mobile consumers has become a major priority for many business sectors. Retailers are working to become more mobile-centric and other businesses are trying to incorporate services that are valuable to the mobile crowd. This has been challenging, however, due to the extremely high amount of competition that exists in the mobile commerce space. Companies like Amazon and PayPal were able to establish a strong foothold in the mobile space early on, but their ability to compete with one another is subject to the whims of consumers.