Page 29 - July 2018 Disruption Report

AMAZON EATS EVERYTHING JANJULAYRY20210818
In essence, Amazon is building a bank for itself, avoiding the regulatory constraints and burdens of insured deposit-taking financial institutions. Through its parlay into financial products, Amazon is taking the customer away from a world of silos and digitalizing their experience, while transforming the world of retailing and banking. “Amazon is the most formidable,” said Andreessen Horowitzer’s Alex Rampell. “If Amazon can get you lower-debt payments or give you a bank account, you’ll buy more stuff on Amazon.”
AMAZON PAYMENTS
Over the last few years, Amazon has aggressively invested in payments infrastructure and services
to make the payment process frictionless for its customers. The online retailer’s Amazon Pay
has evolved to include a digital wallet for customers and payment network for online and brick-
and-mortar merchants, providing Amazon an attractive revenue source for swipe fees. To attract
retailers, Amazon announced it will pass on the special card savings Amazon receives from card
networks to retailers that adopt Amazon Pay. In 2016 (the latest data available), Amazon Pay had
33 million customers in 170 countries. Subsequently, the program expanded it service to France,
Future Developments:
AmaIztaolynaGnod:SApmaainzaond’sisnetrcordeutcpeadynmewenvtesrtwiceaalsp,oinc?luding government payments, travel, insurance, entertainment and charitable donations.
Developing product remains an area of strength for Amazon, especially as it iterates on its in-house biometrics payments
Amazon is now pioneering “Just Walk Out” technology, using computer vision (e.g., facial
technology piloted within its Amazon Go grocery store.
recognition technology), sensor fusion and advanced machine learning to enable a frictionless payments experience in its Amazon Go grocery stores. “Just Walk Out” allows the customer to
The “Just Walk Out” technology uses computer vision, sensor
use his Amazon App to access the Amazon Go store, grab-and-go his products and exit without
fusion, and advanced machine learning to enable a frictionless
physically paying for his purchases.
payments experience, and is based on technology that the company has patented in the past.
THE FUTURE OF PAYMENTS ACCORDING TO AMAZON
“Just Walk Out” is available through the Amazon App. It grants acceAsmsatozotnheisstoillrepilaontidngatlhloiswtsecchunsotlomgyearnsdtoplganrasbt-oalnadu-ngcoh wsiixthnoeuwtstores in 2018. If successful, needAinmgaztonpihsyesxicpaeclltyedchtoecinkteogurtateo“pJuasytfWoralpkrOoduut”cttesc.hnology in its Whole Foods Stores in the
future.
Amazon is still only in beta with this technology, but it has plans
to launch 6 more stores with this capability in 2018. While the
©2018byCanfieldPress,LLC.Allcroigmhtspraenseyrvtyepd.icallydoesnotmakeitspropriewtawrwy.ctaencfihelndoprleosgsy.com 29 available commercially, it would not be surprising if Amazon looks
to integrate this tech into its Whole Foods stores in the future.