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258 points polyrand | 1 comments | | HN request time: 0.213s | source
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vishnugupta ◴[] No.34491814[source]
I worked on Amazon Payments systems for quite some time back in the day. We took pride in being the best payment processors. Had direct connections with card networks, banks and what not. We even launched a PayPal competitor[1]. They launched a Square like device for physical retailers[2]. They invested some serious money in building and maintaining all of that.

However going by this news seems like Amazon has more or less given up on their payments ambitions. Could be also due to recent layoffs. This is a big news. Maybe Amazon wants to focus on being good at few things instead of running hundreds of experiments.

Edit: References.

[1] https://pay.amazon.com

[2] https://www.forbes.com/sites/ryanmac/2015/10/30/amazon-kills...

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1. jacurtis ◴[] No.34495487[source]
This announcement to me is possible the strongest argument against building your own payments platform that I've ever seen.

Next to Walmart, Amazon is probably the largest single credit card payment recipient on planet earth right now, at least in volume of transactions. If Amazon went through the work as you mentioned, to build our their own payments solution for several years and eventually abandoned it in favor of using "off-the-shelf" Stripe. Now, I do recognize that I am sure Stripe is somewhat customized for Amazon's use case and they obviously aren't charging Amazon anywhere near 2.9% + 30¢ per transaction. So its a little different than the Stripe we use, but its still a fascinating argument in the "Buy vs Build" debate to favor buying over building.

I find it also interesting coming from Amazon. Since much of the work I am doing right now is moving internally-built technical systems to AWS' managed and built solutions. So I am deep in the transition of moving built technical systems to a buy model from AWS across many different technologies. To see Amazon dishing off their payments to another company instead of maintaining it in house just feels like the ultimate "circle of life" or rather, "circle of specialization".

Tech is getting so complicated now that its becoming harder and harder to justify in-house solutions to problems. It seems like anymore we are moving everything to be managed by a different provider with companies focusing on one or two things they are amazing at and everything else being passed to another company who specializes at that other thing.