Amazon (AMZN) today launched PayPhrase, a payments product that let’s shoppers checkout on third party e-commerce sites using an Amazon ID authenticated with a short phrase and a PIN.
The service sounds handy, but it’s not a threat to competitor to PayPal’s Express Checkout yet.
It’s just a matter of scale.
JP Morgan analyst Imran Khan says PayPal’s Express Checkout is offered by sites with over $13 billion in combined annual sales.
He notes Amazon’s two biggest launch partners, Buy.com and JR.com ranked 33rd and 103rd in the Internet Retailer guide, with a combined sales volume of $800M in 2008. Imran says the rest of Amazon’s partners “are small, with a handful generating annual sales in the $10M-$30M range and the majority below $10M/year.”
Photo: People Of Wal-Mart