“Amazon customers can now also make purchases on third-party sites without needing to set up separate payment accounts—they simply use the payment information in their existing Amazon accounts,” said Amazon Director of Mobile Payments Howard Gefen.

The Amazon Payments system might work great, but what self-respecting, multi-billion-dollar merchant is going to love an Amazon logo appearing on its M-Commerce site’s payment page?

“It’s hard to imagine a major retailer using Amazon payments rather than their acquirer. Other players like Billing Revolution can step in to do the same thing without requiring the use of a full-service acquirer,” said Todd Ablowitz, president of the Double Diamond Group, an electronics payment consulting firm. “How will serious retailers appreciate sharing the stage with Amazon? I question their appetite to do so.”

Read the full article, “The Problem With Amazon’s Mobile Pay Service: It’s Amazon” by Fred J. Aun.

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