Online retail giant Amazon is taking on PayPal in the online payments space with the launch of a new 'Login and Pay with Amazon' transaction service.

The payment service will enable customers to make payments using Amazon's existing transactional platform, saving time on filling in personal information such as debit card details and address in order to streamline the payments process.

The announcement sees Amazon move into online payments, which is currently dominated by PayPal, though a number of new challengers have entered the market, including traditional financial firms.

The system builds on the previous 'Login with Amazon' system which enabled users to sign into sites using Amazon credentials, similar to the 'sign-in' service offered by Facebook.

Tom Taylor, vice president, Amazon Payments, said that the system "enables companies to make millions of our customers their customers by inviting online shoppers with Amazon credentials to access their account information safely and securely with a single login". Amazon currently has 215 million active account users globally.

Login and Pay will be available to use on a range of devices including smartphones and tablets, Amazon said, streamlining the payments process to enable customers to make purchases in just a one click.

Merchants using the service will be able to embed the payment system onto their site and integrate with back-end systems using a set of widgets and APIs.

Companies using Login and Pay will be charged between 1.9 and 2.9 percent of the transaction value, depending on the monthly volume of payments made, according to the companies pricing list.