Earlier this month Amazon launched its “Amazon Cash” program that allows customers to download a bar code that they can scan at participating retailers to load cash into their accounts. The product has draw both buzz and skepticism, according to an article in Forbes.
First, the buzz:
Other experts agree that this is a good move for Amazon. FuturePay, an alternative payment option for online shoppers that also enables consumers to make a purchase without a credit card, predicts this move by Amazon Cash will decrease cart abandonment while upping loyalty and revenue due to increased payment flexibility. Kobie Marketing, a loyalty marketing firm, foresees this payments option by Amazon will in effect onboard the next generation of consumers to become loyal Amazon users.
But commentators have said they are not sure the unbanked and underbanked people will want to tie up their money in an Amazon account.
But there are other worries. “[Amazon Cash] still offers a challenging user experience not far from the experience they use to buy an Amazon gift card to make the purchase,” Kleinwaechter explains. “The risk for conflicts between Amazon and brick and mortar merchants also raises some important questions about the longevity of this type of service.”
Still, youth, budgeters, and others may drive the service, and the broad range of products on Amazon may hold appeal for unbanked and underbanked people who can now access Amazon pricing.
Overview by Ben Jackson, Director, Prepaid Advisory Service at Mercator Advisory Group
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