While offering its customers a new way of paying for their items, Amazon.com thought they might as well make an equity investment in BillMeLater at the same time.

BillMeLater works on the idea that at the time you make a purchase with a retailer, you enter your zip code, the last four digits of your social security number, and you will receive a bill in the mail for your purchase.  No need for to enter a credit card when checking out with any merchant that accepts this system.

No amount for the equity investment, but the lack of notice of something like “controlling interest” seems to indicate they do not own a majority share in the company.

This is probably the wiser idea for Amazon to get in to the online payment arena than trying to create their own system as they have in the past.  Yes, their MP3 stores seems to be doing well, but when was the last time anyone even remembered they have auctions? 

The Amazon brand is tied so heavily with the selling of products that it will be difficult for them to branch out in to other things.  If they follow the eBay route of buying established brands with trusted names, they will probably get a lot further in breaking out of their retail mold.

Related:

Entry was posted on Tuesday, December 11th, 2007 at 4:05 pm under Amazon, Opinion.

Read more entries by Sean P. Aune.
Stumble It!