Inc. will enable scheduled payments of fixed or variable amounts in attempt to attract businesses that rely on subscription-based or recurring transactions.

The new feature, which was added on June 9, is a part of Login and Pay with Amazon and will be free to end users, says Julie Law, an spokesperson, in an email.

A merchant's customers can establish a payment relationship with that merchant by completing a three-click online registration process, Law says, adding the service also provides a single location to track payments, view billing relationships and edit payment information.

The system additionally updates a customer's card information concurrent with any updates to payment preferences on the user's profile.

Amazon has named two early users for the service: Ting, a mobile carrier and mobile product provider; and PeachDish, an online recipe and meal delivery service.

"This opens up Login and Pay with Amazon to other types of subscription-based business models, companies who want to make Amazon customers their customers, back payments with the A to Z Guarantee and use transparent and low payment processing. In fact, start-up is now using the service as their only payment method," Law says in the email. 

Amazon will not have access information about the items the merchants are selling. This walling off of information is meant to address merchant concerns over Amazon leveraging its sales information as a competitor.

Login and Pay with Amazon launched in October. Amazon has been gradually adding payments tools to its e-commerce site, making it a stronger competitor to PayPal given Amazon's vast trove of user and merchant data. Amazon recently added a Twitter shopping feature, and also enables its virtual currency, Amazon Coins, to be used on tablets and the Fire TV media streaming device. 

Subscribe Now

Authoritative analysis and perspective for every segment of the payments industry

14-Day Free Trial

Authoritative analysis and perspective for every segment of the industry