Reinforcing the significance of mobile payments as a mainstream
channel, Amazon.com has launched Amazon Mobile Payments Service
(Amazon MPS), a mobile web service incorporating the internet
retail giant’s 1-Click checkout functionality.
When using the 1-Click checkout, an order is
automatically charged to the customer’s default payment method on
his or her Amazon account and shipped to the default address, thus
eliminating the need to input details required when going via the
Developers and merchants who already offer
Amazon Payments on their website can easily add the new mobile
payment option for their customers without any additional back-end
Howard Gefen, a director of Amazon Mobile
Payments, noted that Amazon customers can now also make mobile
purchases on third party websites without needing to set up
separate payment accounts.
“They simply use the payment information in
their existing Amazon accounts,” he explained.
Amazon MPS supplements Amazon’s existing
mobile payments service, TextBuyIt which was launched in April
2008. By comparison with Amazon MPS, using TextBuyIt is a laborious
process. To execute a purchase using TextBuyIt customers send a
text message to Amazon with the name of the product, search term, a
bar code or International Standard Book Number (ISBN) code.
Amazon replies with the product or products
that match the search, along with prices. To buy an item, customers
reply to the text message by entering the unique single digit
number next to the item they want. Customers then receive a short
phone call from Amazon with the final details of their order and a
request to confirm or cancel the purchase.
But whatever channel customers choose, Amazon
has again confirmed with its third-quarter 2009 results that online
shopping is a powerful medium to attract buyers, even during times
of economic hardship.
In the quarter Amazon reported sales of $5.45
billion and a net profit of $199 million, up 27.8 percent and 68.6
percent, respectively, compared with the third-quarter of