Report: Amazon entering online payment arena

Seattle — Amazon.com is reportedly entering the online payment arena.



According to Reuters, Amazon.com will offer a service where for a fee, registered customers can use credit card information stored on Amazon.com to pay for services such as utilities or digital subscriptions.



Amazon.com currently serves as an electronic payment middleman for its third-party sellers, who account for about 40% of its sales. This marks the company’s first foray into managing electronic payments for businesses that are not its partners, and places it in direct competition with services such as EBay’s PayPal.



Amazon has not yet formally announced the service, but an executive is quoted by Reuters as saying it is a way to expand how Amazon can help people. The company is also expected to unveil a new smartphone on June 18.