Amazon Will Now Manage Subscription Payments for Startups and Businesses

Forging into PayPal's territory, Amazon expands its reach with online payments.

learn more about Laura Entis

ByLaura Entis

Opinions expressed by Entrepreneur contributors are their own.

Starting today,Amazon will manage subscription payments for small businesses and startups

那means that Amazon users can now use credit card details stored on the site to pay for automatically recurring subscriptions -- such as digital content subscriptions, membership dues or recurring donations and pledges -- directly on a startup's or business's website.

The ecommerce company has been piloting its new subscription-management service for the last few months with a select group of startups,Reutersreported.One of those companies is mobile-phone business Ting. Justen Burdette, a product manager at Ting, told the outlet that customers who paid for recurring subscriptions via Amazon increased their spending on Ting's website by 30 percent.

Related: Stephen Colbert Throws Punches at Amazon

Amazon's new service can help small businesses and startups attract customers who may otherwise have been hesitant to hand over their credit card information to a new business because, like PayPal, it allows users to click a button on a startup or business's website and pay for a recurring subscription with their Amazon credentials. The company, like its competitors, will charge a transaction fee. (Amazon's standard transactional rate is 2.9 percent + $0.30 per-transaction for transactions of $10 or more.)

那said, Amazon may face a little bit of backlash from these startups, as the giant corporation has been known to extend its offerings into new markets and in the future could become a competitor of these smaller companies, instead of an ally.

The timing of this announcement couldn't be more perfect. It has beenwidely rumored that Amazon will be announcing its first smartphone on June 18.通过的fering to manage subscription payments, this could help get more mobile-app makers on board.

For more details about the service,check out Amazon's页面自动支付

Related:Amazon Is Being a Big Tease About Its 3-D Smartphone, May Reveal It June 18

Laura Entis
Laura Entis is a reporter for Fortune.com's Venture section.

Related Topics

Editor's Pick

The Co-Founder of a Fashion Retailer With a Nearly 100% Retention RateReveals the Secret to Happy Employees
Everything You Need to Know AboutFiling Your Taxes in 2023
These 6 Leadership Skills Are Undervalued— But They Shouldn't Be, According to Employees
Want to Become a Franchisee?Run Through This Checklist First
You Know Your Love Language, ButWhat About Your Money Language?
A U.S. Company With Thousands of Employees Just Adopted a 4-Day Workweek —Here's the Innovative Blueprint Up for Grabs
Business News

Diddy Still Pays Sting $5,000 A Day For Using His Song Without Permission, 26 Years Later

The 1997 hit "I'll Be Missing You" sampled the Police's "Every Breath You Take."

raybet

Unpacking the Black Demographic Shift and Why Marketers Must Re-Examine Their Strategies

Why marketers must adopt new approaches that acknowledge and celebrate the rich diversity of this expanding demographic.

Business News

In 20 U.S. Cities, Buying a Single Family Home Is Cheaper Than a Condo

While home prices decreased by 0.7% in February, condos went up by 2.5%.

raybet

How Press Releases and News Features Help Your Business

Press releases and news features are used by numerous companies, established and startup, to help build credibility around the brand. This article will highlight the importance of this marketing strategy.

Growing a Business

The Extraordinary Career of Nike Founder Phil Knight - Biography

The Nike boss wasn't a big fan of advertising, but the company's flair for promotion launched an athletic-shoe revolution.

Business News

A Consulting Firm Makes $140 Million from Extra Booking Fees, and the U.S. Government Happily Pays the Bill

Booz Allen Hamilton is a management consulting company that runs the recreational website people use to book campsites and permits to explore public land in the U.S.