October 12, 2014 is the last day you can send Amazon payments to another person.  

On October 13, Amazon will be stopping their person-to-person payment program according to Dan's Deals and View From The Wing.  The following email was posted on Dan's Deals:

“Additionally, we have updated the terms and conditions of our User Agreement (https://payments.amazon.com/help/Personal-Accounts/User-Agreement-Policies/User-Agreement) that apply to your use of the products and services provided by Amazon Payments. Our updated User Agreement revises certain terms (including, among other things, the elimination of person-to-person payments). Our new User Agreement will become effective on October 13, 2014, which is more than 30 days from when we first posted our updated User Agreement. By continuing to use our services after October 13, 2014, you are agreeing to be bound by the terms and conditions of our new User Agreement.”

It has been posted and discussed in many places that people were sending $1,000 payments to each other to hit the spend requirements on their latest credit card sign up bonus.  This was an easy way to earn extra miles and bonuses from credit cards.

Perhaps Amazon Payments never became popular enough to compete with Paypal. Going forward, Amazon Payments will be used to accept payments on websites.

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