Amazon reportedly wants to challenge PayPal with P2P system

|By:, SA News Editor

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.