Remember Amazon WebPay? Of course, you don’t. The service never really took off and seldom saw any users (in comparison to other similar services). The online retail giant will pull the plug on its free money transaction service on October 13, and as of now, doesn’t have any plan to introduce a new feature that would serve WebPay’s purpose. For those of you (most of you) who don’t know what WebPay is, it is (still is) an online ‘dough’ transaction service that allows users to send, receive, and request money from other users from the Amazon Payments website. If you are an Amazon Payments customer, you won’t see the option to Send Money starting October 13.
WebPay does have a fair number of users regularly using it for their financial transactions, but in comparison to similar services like PayPal, the userbase is almost negligible.
Why are they getting rid of WebPay?
According to Amazon, they are not addressing a customer pain point particularly better than anyone else, and hence are shutting down the service. Their WebPay FAQ states that they have learned a great deal about how and when customers want to send money and will look for ways to use those lessons in the future.
Amazon doesn’t charge its users for sending money via WebPay, but does charge the recipients a 2.9% of the transaction amount plus a pre-transaction fee of $0.30. Plus, the banks involved in the transaction may charge you as well, as the FAQ page points out.
Talking about the FAQ page, Amazon makes it sound like the money transaction including sending and receiving is free, which is deceptive and some Utopians might call it something like a scam. Don’t believe me? Head over here and see for yourself the transaction fee related question.
Transactions initiated prior to October 13 will not be affected, and the recipients will have 30 days to claim funds before the transaction is canceled and funds are returned to the sender, according to the FAQ page.