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Amazon Payments Gets Retailers to ‘Open Kimono’ to Competitor

Despite the risks of sharing customer information with Amazon, small businesses like using the company's online payment service
relates to Amazon Payments Gets Retailers to ‘Open Kimono’ to Competitor
Source: Hex via Bloomberg

Amazon.com Inc.'s relaunch of its online payments business in 2013 was greeted with skepticism. PayPal Holdings Inc. had a huge head start and credit card companies like Visa Inc. already had products that made buying something on the Web as easy as swiping a card.

It seemed doubtful digital shop owners would want to team up with Amazon and share valuable information about their best-selling products and prices. And yet: "There's a market for selling your soul to the devil," said Gil Luria, a Wedbush Securities analyst. "When you accept Amazon Payments, you get access to the coveted Amazon customers. The trade-off is you are opening your kimono to your biggest competitor."