Amazon (AMZN -2.4%), which already offers a home-grown online payments platform for orders placed on its site/apps, is launching Login and Pay with Amazon, a service that (as its name implies) lets shoppers pay for purchases on 3rd-party sites by logging in with their Amazon accounts. (PR)
The service is aimed squarely at PayPal (EBAY -3%), which processed $29.8B in transactions on non-eBay sites in Q2 (70% of its total), and just expanded its reach by acquiring Braintree. Like PayPal, Amazon's pricing starts at 2.9% + $0.30/transaction.
PayPal has fought off competition from Google and other big Internet names. However, Amazon has 215M+ active customer accounts it can leverage to make a dent, and (judging by the company's description of its service) might be able to offer better on-site integration than PayPal.
Meanwhile, PayPal, which added several new offline payment tools and features to its mobile apps last month (I, II), has just announced one more: the ability to pay by having a QR code scanned. Aware this option isn't more convenient than swiping a credit card, PayPal suggests its real value comes from giving users the ability to redeem promotions and gift cards.
Both Amazon and eBay are selling off on a bad day for Internet stocks.