Amazon has launched a new scheme aimed at attracting new customers without a credit or debit card, by getting high street retailers to “top up” their online account.
“Amazon Cash” users can display their unique barcode at participating retailers to deposit cash into your Amazon account.
This move puts Amazon in direct competition with Walmart and PayPal, both of which already offer similar services for the 27% of so-called “unbanked” Americans.
The system works by users generating a code online where they can print a physical copy, or have it texted to a Web-enabled phone.
Users can then save the barcode to an Android home screen or iOS digital wallet, or simply bookmark the mobile website.
Amazon Cash is currently available at a handful of major retailers, including CVS Pharmacy, Speedway, Kum & Go, D&W Fresh Market, Sheetz, Family Fare Supermarket, and VG’s Grocery. Additional vendors are expected to sign on “soon,” according to the e-commerce giant.
Customers can deposit any amount between $15 and $500 per transaction. Funds are immediately available in their Amazon Balance, where that credit may be used just as they would a gift card.
“It’s simple, quick, and there are no fees,” the product FAQ page said. “Your Amazon Balance can be used to shop for millions of eligible physical products and digital content.”
According to the Federal Deposit Insurance Corporation’s 2015 national survey, some 9 million US households are unbanked, with no checking, savings, money market, or credit account. An additional 24.5 million may have a checking or savings account, but also obtain financial services outside the banking system.
Walmart’s five-year-old “Pay with Cash” option lets customers shop a broader selection of items online and pay for them with banknotes at brick-and-mortar stores.
The PayPal My Cash Card, meanwhile, works like Amazon’s barcode at 70 merchants across the country, including Rite Aid Pharmacy, Dollar General, and 7-Eleven.