Amazon A Bigger Threat To PayPal Stock Than Visa, Mastercard?
Summary
Amazon.com ( AMZN ) looms as a bigger threat to PayPal Holdings ( PYPL ) than credit card networks Visa ( V ) and Mastercard ( MA ) or Square ( SQ ), says a financial technology analyst. XAmazon payments pose a threat by allowing third-party merchants to improve checkout rates by letting shoppers pay with their Amazon account, contends MoffettNathanson analyst Lisa Ellis. Amazon also is making other inroads into the digital payment business as it expands into retail. "For Visa and Mastercard, at a minimum, Amazon poses a customer concentration risk, and a risk that Amazon will use its digital wallet to enable and favor alternative funding methods within its platform," added Ellis. "In addition to the well-known Amazon Pay checkout button and Amazon-branded private label and co-branded credit cards, Amazon also offers merchant loans and lines of credit, currency exchange, and a checking account-like product called Reload.
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