- TechCrunch reports Amazon (AMZN +4.4%) is developing a P2P payments system that would fully bypass banks and payment processors, and represent a further escalation of its challenge online payments colossus PayPal (EBAY +2%).
- Amazon launched a payments solution for 3rd-party merchants in October, and is reportedly also working on a Kindle-based checkout system for retailers. TechCrunch observes a P2P system could help Amazon reach "unbanked" customers; PayPal has already made some efforts to win their business.
- Separately, re/code reports PayPal is "pitching" Apple on offering white-label services (fraud detection, processing, etc.) for its planned mobile payments service. But two of the site's sources state it's unlikely Apple would have any need for PayPal.
- eBay shares sold off on Monday in response to a WSJ report about Apple's payments service. PayPal handled $27B worth of mobile transactions in 2013, up from $14B in 2012.
- Both Amazon and eBay's shares have joined a Facebook-fueled Internet stock rally.
Amazon reportedly wants to challenge PayPal with P2P system
Jan 30 2014, 14:24 ET