Amazon (AMZN) is starting a program which will enable businesses to manage their recurring payments, according to a report from Reuters. Set to launch Monday, the new effort will help the company compete with eBay’s (EBAY) PayPal and Google (GOOG) Wallet.
Amazon will allow customers to use stored credit card information to conveniently pay for services like a digital music subscription or a monthly phone bill. Amazon will charge an additional fee for each transaction.
In recent months, Amazon has been testing the program with startups including Ting, a mobile company owned by Tucows (TCX). The report says that those who used Amazon’s service spent 30% more on Ting’s website.
The service will establish a new revenue stream for Amazon; its first-quarter revenue grew 23% to $19.7 billion, with $108 million in net income.
The company will be holding a special event on June 18th in Seattle, where Amazon is based. It is widely expected that the company will unveil an Amazon-branded smartphone.
Amazon shares are down 18% year-to-date. They are currently trading around $328, with a market cap of $151 billion.
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