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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
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Source: Hex via Bloomberg 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."