Amazon launched the online payment system

Amazon.com Inc. recently launched an online payment system. The move is intended to fill the gap and to compete with eBay's PayPal payment system.

This new online payment system is called Amazon's Flexible Payment Service. It is currently in early testing.

Amazon.com is the largest online sales site in the world. In addition to their direct purchases, customers can also purchase goods through a third-party salesperson. With this software customers and third-party vendors can use the Amazon payment system through their website.

This payment system operates under the management of Amazon Web Services. To make a startup and set up a purchase, you must go through Amazon's computer network and a networked computer.

Customers will use their Amazon password and payment information on the file to pay for purchases and services on third party sellers' websites, even without going to Amazon.com.

Analyst Scott Devitt of Stifel Nicolaus wrote in the book of the software launch date that, according to his prediction, this form of payment will become one of the most dynamic forms of online payment in several next year.

He said the Amazon service will compete with PayPal and beyond.

Devitt also wrote, " In the near future, we believe that companies competing in this area and related services in traditional sales channels will have to worry before the boom in application payment methods. This innovative technology ".

Deutsche Bank analyst Jeetil Patel wrote that, the first thing that can be seen in the payment model of debiting transactions with Amazon's bank is that it has a lower budget than PayPal. This program will help Amazon attract and retain new customers, in the context of increasingly sophisticated customers in using online services.

The program allows third parties to be more flexible with sending and receiving money via credit card, bank account or transfer of settlement to Amazon's billing address.

Thanks to this improvement, Amazon's stock has increased by $ 2.20 to $ 79 on the Nasdaq market.