Denny |
December 20, 2013
Amazon acquires GoPago
Acclaimed online retailer Amazon has announced the acquisition of GoPago, a mobile commerce firm based in San Francisco, California. Amazon has been working to establish a more formidable presence in the mobile space in recent years, aiming to compete with companies like eBay that have found a great deal of success by engaging mobile consumers. The acquisition of GoPago may provide Amazon with the extra tools it needs to overcome the competition.
Firm shows promise in the mobile sector
GoPago was launched in 2009 and is responsible for a mobile application that allows users to browse and pay for products from their smartphones. The firm later went on to specialize in point-of-sale software, developing solutions for merchants interested in engaging the mobile audience. JPMorgan Chase invested an undisclosed amount of money into the firm in February of this year, adding to GoPago’s stance in the mobile sector and attracting a great deal of attention to the firm.
Ambitious new projects may be coming in the future
GoPago suggests that its acquisition by Amazon will open the door for ambitious new projects, but what these projects will be has yet to be announced. Amazon itself has yet to announce any new and ambitious mobile projects as the company has been somewhat heavily focused on the projects that are already underway. How GoPago will fit into the Amazon portfolio and what benefits it will bring have yet to be seen.
Retail mobile commerce is becoming more competitive
Mobile commerce has become quite popular in the world of retail. Several prominent companies have been investing heavily in the mobile sector in order to engage in a new generation of consumers. Currently, eBay and Amazon hold a very formidable place in the mobile retail sector. Companies like Square and Google are attracting more attention as providers of mobile commerce services and mobile wallets, however.
Amazon and eBay may clash in the mobile commerce field
Competition in the mobile commerce field is nothing new. Technology firms from around the world are competing with one another in order to develop the next great mobile commerce platform while retailers are working to engage mobile consumers through their own platforms. The popularity surrounding mobile commerce has lead to the emergence of a vast multitude of startup companies that seek to benefit from the success that can be found in the mobile field.
Both companies have high hopes for mobile commerce
Mobile commerce competition may reach a new high as two of the sector’s largest players begin to clash. Both Amazon and eBay boast of a commanding presence in the mobile commerce field. Amazon’s retail power and eBay PayPal division have made the two companies quite formidable, but the two had little occasion to clash in the past. Now that mobile commerce has become a global phenomenon and has shown no signs of slowing down, however, Amazon and eBay are expected to vie for supremacy within the field.
New service from Amazon aims to make mobile payments more convenient
Amazon recently launched its Login and Pay service, which is meant to make mobile payments more convenient for online shoppers. This service is available to retailers and used to make retailers more accommodating of the needs of mobile consumers. The service itself is quite similar to that offered by PayPal and both Amazon and PayPal feature robust anti-fraud capabilities designed to make the mobile commerce sector somewhat more secure. Amazon may be able to compete with PayPal in the mobile space with its new service, especially as eBay focuses more on expansion rather than the development of new services.
Online sales in the US expected to reach $328 by end of 2016
In the U.S., online sales are expected to reach $327 billion by 2016. PayPal is currently the leading online payment processor, accounting for $7.7 million in transactions on a daily basis. There may be plenty of room for Amazon and eBay to grow into the mobile commerce field side by side, but the two companies share a large consumer base. Both appeal to the same demographic as one another, making it difficult for either company to exist in without competing with one another in some way.
