Amazon's PayPal-Killer Is Impressive, But Small Time

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, and 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

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