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PayPhrase

Amazon’s PayPhrase is an Internet point-of-sale (POS) shortcut that allows Amazon customers to use their Amazon payment and shipping authorization credentials while shopping at third-party partner sites.

The advantages of PayPhrase are that consumers don't have to share credit card information with multiple websites and businesses can leave the complex task of ensuring that customer data remains safe to Amazon. By providing partner businesses and consumers with a mechanism to ensure secure financial transactions, Amazon hopes to compete with eBay’s PayPal and Google Checkout. By making the login a phrase and allowing the consumer to customize their own PayPhrases, Amazon is well positioned to simplify the shopping experience on mobile Internet devices equipped with voice recognition technology.

To use PayPhrase, consumers must create their own customized PayPhrase at Amazon’s website. The phrase needs to have two or more words and can be up to 100 characters in length. Unlike a traditional password, no digits or special characters are allowed. Each PayPhrase is then associated with a four-digit personal identification number (PIN), which is also created by the consumer. Amazon PayPhrase account activity can be controlled through monthly spending limits and monitored online, by email or by text message.

See also: augmented reality, 2D barcode, mobile marketing

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The Amazon website has more information about PayPhrase.

This was last updated in November 2009

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