Amazon Tries to Bring Digital Wallet to Stores
Amazon is reportedly trying to convince merchants to accept Amazon Pay digital wallet in brick-and-mortar stores, challenging Apple Pay by offering incentives to get new merchants on board, the Wall Street Journal reports.
According to sources who spoke to WSJ, the company is focusing on merchants who wouldn’t perceive Amazon as a business rival or competitor, merchants like service stations and restaurants.
The tech giant is reportedly offering these merchants lower payment-processing fees and marketing services.
If successful, Amazon would be able to expand its the digital wallet service beyond online transactions.
Currently, customers can use Amazon Pay with third-party merchants including Dyson and order products with Alexa-enabled devices.
However, customers are able to use their Amazon accounts for purchases at Amazon’s 4 Star Store and Amazon Go stores.
WSJ did not report how customers would use Amazon Pay in stores, i.e. tap and go with their phones or by scanning a QR code, however, Amazon uses QR codes in its own retail stores, chances are QR codes would be the process.
Apple and Samsung have a bit of a headstart in this space, but the US and other countries have been slow to adopt mobile payment — only around 1 per cent of in-store transactions were completed with some sort of mobile payment last year in the US.
According to the Wall Street Journal’s sources, Amazon is looking take advantage of the slow adoption and make their mark before the competition heats up.
Amazon Pay launched in 2007 and has seen limited adoption. It isn’t currently available in Australia.