Can Amazon Make a Dent in Mobile-Checkout Market?

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Aug. 13 (Bloomberg) -- CRT Capital Group's Neil Doshi and Mashable's Christina Warren discuss Amazon entering the mobile-checkout market. They speak with Trish Regan on "Street Smart." (Source: Bloomberg)

It would start like square and be ready to compete.

Neil, is amazon going to be able to make a dent on this market?

Absolutely.

We definitely think so amazon has shown its desire to go into payments.

They have 240 million customers, 40% of goods on amazon are sold by third-party merchants.

The next week step is to move payments off-line and by cutting the -- undercutting the competition i think there is a good opportunity for amazon.

This is a crowded market space.

It is not just square.

You have other companies like ebay all looking for a slice of the pie.

They do.

It's also a potential market.

Amazon does not necessarily have to win this space foursquare to suffer -- for competition to suffer.

The margins are not great?

Wax margins are terrible.

The percentage point lower than their competitors.

They are probably going to be losing some money, but they are doing that in a hope to create new customers.

Neil, let me just ask you.

Since amazon is getting into everything these days, trying to make a dent in the mobile payment market, is it doing all of these things well enough, or is it just tiptoeing in bit by bit?

Does it need to have a bigger, stronger push if it is going to take over a similar marketplace?

I think ultimately they have to make a bigger push.

What we have seen is the past is they come in with a product.

They quickly innovate on that product.

We have seen that with the kindle e-books and the kindle fire.

They do have over two hundred 40 million customers with credit card information on amazon.

I think what the goal might be is to be able to marry those people off-line with online purchases.

If i am going to get a massage once a week and paying with amazon, amazon could potentially market massage related products to me.

They probably would.

Let's talk about the online payment business as a commodity itself.

Is it eventually going to come down to how you can pay for something most easily and cheaply, or does brand even matter?

I think that is a good point.

That is what we are seeing happen.

All of these look like square.

It doesn't really matter to the proprietor what they are using.

They want the best deal they can have.

Customers want to pay with a credit card.

There is trust built in.

You think about amex, mastercard . people use the card they trust and like.

They definitely do.

The card is different from the payment processing.

Most users do not think about who is behind processing the payment.

As long as there is a reasonable level of security i don't think that is going to deter a customer.

It could deter merchants.

They have taken on a lot of debt.

This is going to be a challenge.

It shows what they are offering is a commodity and a lot of people can do it, too.

Coming up, street smart

This text has been automatically generated. It may not be 100% accurate.

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