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Will Amazon be afraid of the company’s debut of the company’s first debit card?

via:博客园     time:2018/3/14 13:02:44     readed:268

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E-commerce giant Amazon launched the company’s first debit card in Mexico on Tuesday to encourage users without bank accounts to shop online.

As e-commerce is increasingly popular with consumers, online retailers and physical stores in Mexico have invested heavily in e-commerce, although e-commerce sales currently account for only a small portion of Mexico’s total retail sales.

However, part of the challenge of developing e-commerce in Mexico is that some users are wary of cyber fraud, while others do not have credit and debit cards. According to a government report in 2017, only less than a third of Mexican adults have credit cards.

Amazon stated that Mexico is the first country where the company provides debit cards. This debit card is called Amazon Rechargeable and aims to provide users with a new way to shop on Amazon.com.

Fernando Ramirez, Product Manager of Amazon Mexico, said in a statement: “Users without credit cards and debit cards will find that Amazon Rechargeable is a very simple and feasible way to convert cash into payment method. ”

Carlos Hermosillo Bernal, an analyst with the research company Actinver, points out that debit cards can help people become part of the "regular economy", especially those related to shopping promotions.

"How can we make the informal industry become official? You have to build a bridge," he said.

Bonnar said that shopping chains often provide users with credit cards, but few provide debit cards. With the support of MasterCard and Bank of Mexico Grupo Financiero Banorte, Amazon debit cards can be used to cash in convenience stores throughout Mexico.

Last November, Amazon also worked with convenience stores such as 7-11 to provide its customers with a cash payment system, also for users without a credit card.

Recently, Amazon has been very active in the financial and payment sectors. The Wall Street Journal recently quoted sources as saying that Amazon has started negotiations with several banks including JP Morgan Chase and Capital One, and plans to provide platform customers with demand deposit accounts.

It is understood that the negotiation is still at an early stage and the exact shape of the product and the services it contains have not yet been finalized. However, in general, the target audience for new products is still young people and people without bank accounts.

Over the years, rumors about the entry into the banking industry by technology giants such as the Amazon have not stopped. However, at present, these companies eventually choose to start with businesses such as payments and loans. The regulatory structure is one of the main reasons for this situation, so Amazon and other platforms generally choose to cooperate with traditional lenders rather than face-to-face direct competition. However, the potential image of the tech giants such as Amazon on the banking industry can still not be overlooked. A market research company in the United States stated that if Amazon introduces a bank account, it will have the potential to become the third largest bank in the United States.

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