Page 30 - July 2018 Disruption Report

AMAZON EATS EVERYTHING JANJULAYRY20210818
Amazon Cash
AMAZON CASH
Launched in 2017, Amazon Cash allows customers to deposit cash—without a fee—into a digital
The Amazon Cash program bridges the gap between online
account by showing a bar code at a partner brick-and-mortar retailer, including pharmacies (CVS,
commerce, using debit or credit cards as payment, and offline
Fred’s Pharmacy, etc.), gas stations and convenience stores (7-11, Sheetz, Speedway, etc.),
commerce that relies on “cash on delivery” options like cash
grocery stores (VG’s Grocery, Family Faire Supermarkets, D& W Fresh Market, etc.), and other
and gift cards.
retailers (Ace Cash Express, Pay-O-Matic, Boost Mobile, GameStop, etc.). Recently, Amazon Cash was expanded to select stores in Puerto Rico. Customers can make payments ranging from
Amazon Cash launched in April 2017 to allow customers to
$5 to $500 from their Amazon Cash account by using their card’s bar code or via their mobile
deposit cash, without a fee, to a digital account by showing a bar
phone.
code (either printed physically or digitally) at a partner brick-and- mortar retailer such as CVS, 7-11, and others.
AMAZON CASH IS A DEPOSITORY FOR CASH
Amazon Cash fits neatly into Amazon’s strategy of appealing to
In May 2018, Amazon Cash extended its partnership with Coinstar to allow customers to deposit
underbanked and unbanked populations — customers do not
spare change at 20,000 Coinstar kiosks—typically located in high traffic grocery stores and
need a bank account or a phone to open an account, only access
mass merchants—and cash out digitally using the Amazon Cash app. In 2018, the Amazon/
to the internet and a printer.
Coinstar partnership plans to enable 5,000 kiosks with the Amazon Cash services by yearend. If successful, Amazon could expand the service to the remainder of the network.
In the US, there are estimated to be 33.5M US households defined
as unbanked or underbanked, according to the FDIC’s most recent
survey. Prior to Amazon Cash, this was an unaddressed customer
The Amazon Cash product is positioned to help the 33.5 million households in the U.S. that are
base for the online retailer.
underbanked and unbanked population have access to a the company’s digital payment product and expand Amazon’s customer base for online sales.
Amazon has also introduced a kid-friendly account—Amazon Allowance—that allows children to set up their own Amazon account with their parents’ consent to purchase products. Parents can deposit recurring funds to their child’s account and oversee their children’s purchases.
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