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The eBay (NASDAQ:EBAY) and Amazon.com (NASDAQ:AMZN) fight continues….

As most now know, eBay/PayPal acquired BillMeLater earlier this year to augment their growing payments business (and likely to head off a potential competitor before it got too large).

At the time of the acquisition, BillMeLater was an integrated payment method at Amazon.com. Amazon.com announced yesterday in Seller Central, however, that they will no longer support this payment method.

Notice: BillMeLater no longer accepted as of December 31, 2008

Dec 30, 2008

Effective December 31st, 2008, BillMeLater (BML) will no longer be accepted as a payment method on Amazon.com. All sales and orders processed with BillMeLater prior to this date will continue to be processed; no changes are needed for these existing orders. Buyers and sellers can continue to use the remaining payment methods available on Amazon.com for future orders.

While we assume eBay equally assumed this removal would occur when contemplating the acquisition, the real question is the amount of payment volume, customer acquisition, and brand awareness this Amazon.com relationship drove to BillMeLater. Also, note the speedy removal of BillMeLater and short notice period. It’s possible eBay could have assumed a bit more of a tailwind depending on the contractual terms between Amazon.com and BillMeLater.

Expect continued innovations, maneuvers, and fighting for transaction and payment volume between these two e-Commerce giants in 2009!

Disclosure: Author holds a long position in eBay

Source: Amazon No Longer Accepting eBay's Bill Me Later: The Fight Continues