PayPal, Square may be challenged by Amazon's Buy with Prime
Amazon's (AMZN) move to roll out a "Buy with Prime" button on third-party websites is likely to directly compete with PayPal Holdings (NASDAQ:PYPL) for smaller merchants, said Oppenheimer analyst Dominick Gabriele.
"To give members the broadest possible selection, low prices, and a convenient shopping experience, Amazon (AMZN) has invested billions of dollars in infrastructure that helps small and medium-sized merchants offer Prime shopping benefits on Amazon.com, empowering them to reach new customers and grow their businesses," the e-commerce giant said in a statement on Thursday.

While not mentioned in the Oppenheimer note, it's unclear what the effect could be for Block's (SQ) Square ecosystem for small and mid-sized merchants.
Consumers who click on the "Buy with Prime" button will go through Amazon Pay and will leverage its fulfillment network to deliver orders, Amazon (AMZN) said.
Still, Oppenheimer's Gabriele notes that "adoption likely could take years, and many retailers that don't use Amazon's (AMZN) platform today may not want to give a competitor the opportunity to handle the payment mechanism."
Previously (April 21), Amazon (AMZN) introduces Buy with Prime benefit