PayPhrase Attacks Paypal! News at 11.
Ok, now they’ve gone and done it. Amazon just doesn’t know when to quit. Is there a web service they don’t want to own? I josh. I like Amazon and like to see them put new and useful services out there and I am a big proponent of competition. I think competition is good for everyone as long as it doesn’t become predatory.
Now, Amazon has been going after Paypal for a while now with Amazon Checkout. But now, they have made this a super simple, no login, purchase tool with PayPhrase – the easy-to-remember shortcut for paying on Amazon.com and other websites.
According to Amazon,
PayPhrase links your Amazon.com payment and shipping information with a simple phrase that you choose. With PayPhrase, you no longer have to register or share credit card information with multiple web sites.
With Amazon Checkout, my info is stored and some kind of token is exchanged with a vendor so my personal information doesn’t need to be. I like Paypal and use it fairly heavily when paying for things on the internet. I also like Amazon and even have an Amazon credit card. I think I buy something from them at least once a month. Now, I don’t even need to login.
The cool thing about PayPhrase is the control you can put on an account. You can give your kid access and set spending limits and have it send you order approval notifications. Man, I need that for XBox Live! You can use it to give your kids an allowance. Set them up with a PayPhrase using your credit information and then set a monthly limit. Sweet!
There is no way that PayPhrase is as widely supported as Paypal right now. Amazon CheckOut market share has got to be minimal compared to PayPal. Have to see how well it spreads over time. For a developer or merchant already on AWS, it’s kind of a no brainer to include this. They already have some merchants using PayPhrase: DKNY, Jockey, Patagonia, Buy.com, J&R Electronics, and Car Toys to name a few.
If you sign up, the system will generate a phrase for you. I didn’t like mine as there is no way I would ever remember it. They also list some suggestions but I didn’t like those. Almost every suggestion included the word “bread”. They trying to tell me something? I swear I’ve cut back on the carbs!
It must be at least two words and contain no numbers. This is NOT a password. It is a pass phrase.
Once you’ve chosen your phrase, you also have to enter a pin number (4 digits). When complete you verify your credit card and payment info and then you are the proud owner of a new PayPhrase.
Be interesting to see if they make any kind of a dent in PayPal. This is a service of Amazon Checkout which is a sub-service of Amazon Payments. I don’t believe PayPhrase is an additional fee on top of CheckOut. CheckOut has very reasonable pricing.