Amazon is doing a lot of things, they have their retail business, their cloud company and a lot of other stuff. But surprisingly they don’t have a strong presence in payment services given that it would nicely fit with their current ventures. Yes! Amazon Pay is a thing, but it’s use is severely limited and Amazon hasn’t done much to turn it around.
Amazon Pay Might Be A Bigger Goal For The Company Now
Back when Amazon Pay was introduced in 2007, it wasn’t a priority for the Seattle based company, but things are very different now.
WSJ found out from anonymous sources that the company was asking traditional brick-and-mortar stores to start accepting Amazon Pay. Places like gas stations, convenience stores and restaurants were approached. So clearly Amazon has started to put emphasis on their digital wallet.
The biggest hurdle to Amazon Pay’s growth is Amazon itself
Amazon has long established themselves as a massive online entity, so they have started making the move to offline retail as well. Companies like Walmart and Target probably see Amazon as a more direct competitor now.
This puts Amazon Pay in a bad position as big retail brands won’t accept payment methods created by their biggest competitor. Although Amazon can start with smaller stores and throw in enough incentives to make it a popular option there.
The Amazon association comes with its pros as well. A lot of people use Amazon Pay to buy products from their online store, if it becomes a widely accepted payment option, people can just use their leftover balance to shop in local stores.
Amazon Pay is Also Being Pushed in Asian markets
Amazon’s strategy to promote Pay is different region wise. In India consumers receive cash backs in their wallet if Amazon Pay is used as a payment option during checkout.
They also have tie-ups with online-based services, where Amazon Pay can be used as a payment option. Although unlike their biggest competitor in the country Paytm, they lack usability in local stores.
Amazon Pay has also started rolling out an EMI payment option for select users given the low usage of Credit Cards in the country.
Amazon can really profit from Pay’s success. Once a payment aggregator gets big enough, they can start charging for individual transactions made from their gateway. This can rake in some serious money for the company, given the massive amounts of traffic it generates.