Bezos Wants Amazon Payments Team to ‘Go Faster’
According to a report from Re/code, Amazon’s (NASDAQ:AMZN) payments team is under increasing pressure from CEO Jeff Bezos to improve and grow its payments service. Bezos has focused on payments as a key area of growth and focus for the company, which has access to the credit card information of 215 million people but isn’t doing much to leverage that data.
Re/code interviewed Amazon’s payments head, Tom Taylor, at the company’s headquarters in Seattle. “Jeff’s told us it’s something we need to be successful in and should be successful in. The pressure I feel from Jeff is, ‘Go faster,’” Taylor said.
Despite access to all that credit card information, Amazon still fails to compete against payments industry leader PayPal, which is owned by eBay (NASDAQ:EBAY). Amazon’s current Log In and Pay with Amazon option, which allows Amazon users to both log in to certain e-commerce sites and make purchases using their information stored with Amazon, has failed to take off. According to Re/code, the service doesn’t have very many big-name customers. Industry experts say that Amazon’s offering hasn’t grown very quickly because online retailers that compete with Amazon don’t want to be one of the company’s customers.
Meanwhile, activist investor Carl Icahn is pushing a reluctant eBay to spin off PayPal in order to unlock the service’s true value, which he believes is dampened by its association with an online retailer. Other e-commerce businesses don’t want to adapt PayPal because doing so would result in them supporting a member of their competition, Icahn says. EBay has remained firm that it thinks it’s best that PayPal remains part of the company.