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Why Amazon is Better Placed to Disrupt Payments Than Apple

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Apple may be catching all of the headlines with its rumored interest in mobile payments, but some industry watchers think another tech giant may be better positioned in the mobile payments industry: Amazon. IDC’s James Wester writes that Amazon — with its rumored handset, highly customized version of Android OS, dedicated Amazon Prime users, and “massive ecommerce market” — would be a good bet to disrupt the payments industry. Not only does Amazon have a large number of active accounts — around 200 million — but it also revolutionized mobile transactions with its one-click purchasing feature. Apple has 800 million credit cards on file through its Apple ID system, which allows users to make purchases in the iTunes and App Store, but most users don’t spend much money with Apple. The average spend per user, now about $15 per year, has been cut almost in half since 2011, according to Cherian Abraham, senior business consultant with Experian. Amazon has fewer users, but they spend more money on a vast variety of products and services. Amazon also has a headstart on Apple when it comes to convincing users that it could replace cards, since users can link their Amazon accounts directly […]

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