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Amazon expands payments to take on PayPal

Amazon has stepped up its efforts in the online payments space by expanding the reach of its product as it looks to take on PayPal, the company announced at the Money 2020 fintech event in Copenhagen on Monday.

The U.S. e-commerce giant relaunched its payments business in 2013. It allows Amazon customers to pay for anything with their Amazon account on other websites. Merchants can use Amazon's solution to help their business.

Amazon is now extending the offering to merchant partners - third-party businesses hosting a shop on an e-commerce website. The idea is to help these businesses have a payment solution that can be integrated with their online store.

"The Amazon Payments Partner Program provides Partners with the tools and resources needed to extend the trust and convenience of the Amazon experience to their merchant customers," Patrick Gauthier, vice president of Amazon Payments, said in a press release on Monday.

A worker prepares packages for delivery at an Amazon warehouse in Brieselang, Germany.
Sean Gallup | Getty Images
A worker prepares packages for delivery at an Amazon warehouse in Brieselang, Germany.

"We are working together across geographies and industries to help merchants grow and create experiences that delight customers throughout the shopping journey."

Amazon Payments is a direct competitor to PayPal and credit card companies like Visa which has its own online payment solution.

Over 23 million customers have used Pay with Amazon to pay on a third-party website, according to the company. For Amazon, its payment solution allows it to get data about people's shopping habits which could help it target people with products on its own website.

Amazon charges merchants 2.9 percent plus 30 cents to process each transaction.

The new partner program is available by invitation in the United States, Germany, United Kingdom and Japan.