Amazon becomes PayPal's competition

PayPal now has a new competitor to watch out after Amazon launched, yesterday, a new payment service which enables people to pay for bills or subscriptions.

The approximately 240 million users on Amazon can make online payments by using the credit card data stored on Amazon's website. The company will exact a transaction fee.

This move comes ahead of a June 18 event when CEO Jeff Bezos is expected to announce the launch of Amazon's own 3D smartphone.

Soon to introduce their own versions of online payment services are Apple and Facebook, as Google already has its Google Wallet app.