Amazon will be shutting down its free Webpay peer-to-peer payments system from mid-October, having made a low impact in the competitive online payments market.
Amazon has offered the free service to Amazon Payments users for the last four years, and the offering was largely viewed as an attempt to challenge PayPal’s hold on the online financial services market. But with Google and Square also offering similar P2P services, the e-commerce giant has decided to abandon Webpay.
Even its passing has not caused much of a stir, perhaps illustrating the limited impact the service had.
Webpay allows users to send digital cash to anyone by email, using only a credit card or their Amazon account. Because it can be characterized as a payment by the sender and as cash by the recipient, transactions are cost free. Webpay users will still be able to make payments until the service is pulled on October 13th, and recipients have 30 days to claim funds before money is returned to the sender. Even after that date, users will still be able to see a history of their transactions.
“We are not addressing a customer pain point particularly better than anyone else,” Amazon admitted on its website. “We’ve learned a great deal about how and when customers want to send money and will look for ways to use these lessons in the future.”
Barclays has signed contracts with six of the fintech startups that just graduated from its second New York accelerator programme.
Company card killer Pleo has raised $3m in new funding as it prepares for public launch in the UK and Denmark.
Cheques are become less and less common in the UK according to new research from global market research firm Mintel which claims contactless card use has overtaken cheque payments in the UK for the first time.
Payments for digital and physical goods made mobile operating system-based payments platforms like Apple Pay and Android Pay are expected to boom in the next few years according to new analysis from Juniper.