TheDenverChannel.com










Money
Related To Story
(AP Photo/Amazon.com)

Amazon Lets Users Pay Bill With Words

Online Retailer To Unveil PayPhrase Next Week

POSTED: 10:01 pm MDT October 28, 2009
UPDATED: 12:53 pm MDT October 30, 2009

You're probably used to typing your name, address and credit card number when you buy things online. Amazon.com is guessing you don't enjoy it, though, and wants to simplify the process by letting you purchase items with a short phrase such as "Shopping Fanatic" and an identification number.

The online retailer planned to unveil the system, known as Amazon PayPhrase, on Thursday.

Here's how it works. If you store a credit card number and shipping address with Amazon, you can elect to have that information represented by a short phrase and ID number. Then you can enter that phrase and PIN instead of giving a credit card and address to buy things on Amazon and other Web sites that accept this PayPhrase system.

Amazon says that approach is simpler than entering card numbers -- and more flexible, because consumers can set up multiple phrases and ID numbers tied to the same credit card. That could enable parents, for example, to give their children passphrases that have monthly allowances.

The transactions are processed by Amazon, which earns a commission each time someone uses PayPhrase on a third-party Web site.

Amazon already has a service called Checkout by Amazon, which let you buy items on non-Amazon Web sites using the information stored in your Amazon.com account. It also offers a "1-Click" ordering option on Amazon and other sites. The "1-Click" service isn't as flexible as PayPhrase, though, and Checkout by Amazon requires more steps.

PayPhrase will be available at all Web sites that use Checkout by Amazon, such as electronics retailer J&R Electronics and outdoor gear and clothing company Patagonia. Amazon would not say how many sites already use the service.

Matthew Williams, Amazon's general manager of consumer payments, says making it easier to buy things online might lead fewer people to abandon their virtual shopping carts. More than half of the times that consumers put something in an online cart, they don't end up buying the goods, according to a July report from Forrester Research.

Russ Jones, a payment consultant at Glenbrook Partners, a consulting firm, thinks PayPhrase may help Seattle-based Amazon get more merchants using its payment services. That doesn't necessarily mean, however, that these merchants will stop using competing offerings such as eBay Inc.'s PayPal or Google Inc.'s Checkout service.

"When you look around at leading e-retailers in the U.S., many of them are accepting four, five, six, even seven forms of payment," Jones said. "It's not uncommon that they'll embrace anything that drives incremental purchases."

The following are comments from our users. Opinions expressed are neither created nor endorsed by TheDenverChannel.com. By posting your comments you agree to accept our Terms of Use. To report an offensive or otherwise inappropriate comment, click the "Flag" link that appears beneath that comment. Flagging a comment will send it to our editorial staff for review.

Links We Like

Sponsored Content
The first step in reducing debt is recognizing how much you have. Let us help you with the rest and get out from under your debt in 12 months. More

Get car insurance quotes from all the major carriers and save time an money in the process. Just enter your zip code and start saving today. More

Does your phone have bad reception or drop calls in your house? Then you need a Magic Jack. More

A degree from ITT Technical Institute can help you achieve your goals and get you started on the path towards a rewarding career. More

Credit Report

560? 675? 720? The average US Credit Score is 692. What is your score? See it online for FREE! More

Best Local Rates On...



LocalNational

30 Yr Fixed Mortgage4.90%5.03%

48 Mo New Car Loan6.95%6.77%

$30k Home Eq Loan7.90%8.33%

6 Month CD1.02%1.13%
Help! I don't understand!
More Rates


Sponsored Links

Stock Quotes

Get a Quote
Enter Symbol

Housing Crunch

With banks and lenders facing major troubles, gain some insight on how to sell, refinance or keep your home. You'll find everything mortgage in our special section. More


E-Mail News Alerts
Get breaking news and daily headlines.
Browse all e-mail newsletters