I just read about Amazon's new Amazon Flexible Payment Service, which is set to compete with Payal, Google Checkout, et al.

I know it's newer technology so plans for integration are probably not in place right now, but I think this will be successful for one reason; there are millions of Amazon customers, and people seem to be a bit disenchanted with Paypal. For merchants, discount rates are less than Paypal

From the FPS website:

Pricing

There are no minimum fees and no start-up charges to use Amazon FPS. In addition, use of the Amazon FPS Sandbox is free of charge.

Fees are assessed on a per-transaction basis and vary depending on the payment method used and the transaction amount:
For Transactions >= $10:

* 1.5% + $0.01 for Amazon Payments balance transfers
* 2.0% + $0.05 for bank account debits
* 2.9% + $0.30 for credit card

For Transactions < $10:

* 1.5% + $0.01 for Amazon Payments balance transfers
* 2.0% + $0.05 for bank account debits
* 5.0% + $0.05 for credit card

For Amazon Payments balance transfers < $0.05:

* 20% of the transaction amount, with a minimum fee of $0.0025

Qualified developers can apply for the following monthly volume discounts for credit card transactions:

* 2.5% + $0.30 per transaction for payment volume from $3K- $10K
* 2.2% + $0.30 per transaction for payment volume from $10K - $100K
* 1.9% + $0.30 per transaction for payment volume over $100K

More information here:
http://news.yahoo.com/s/nm/20070806/wr_nm/amazon_payment_dc

and here:

http://www.amazon.com/gp/browse.html?node=342430011

This is for Amazon Merchants, isn't it? Do you sell on Amazon?

Nope, it's for use on 3rd party websites as well as Amazon. There's a full description here:
http://www.amazon.com/gp/browse.html?node=342430011

FWIW, it also supports micro-payments.

It seems interesting. It may be good for some because of the reliability of Amazon when it comes to credit card transaction infrastructure.

Scooter