Amazon asks traditional brick stores to begin accepting its mobile payment platform, Amazon Pay, anonymous sources told Wall Street Journal . The company has its sights at gas stations and restaurants, as well as other stores that do not directly compete with its extensive retail.
Amazon Pay, which has existed since 2007, has seen limited adoption. At the moment, you can use Amazon Pay to shop online with tens of thousands of third-party traders, including Dyson and Parachute Linen Dealers, and make purchases in Amazon stores. You can also order Amazon Pay through Amazon-enabled devices. Amazon promises that consumers will not want any fees, and sellers want the least.
Journal Journal did not report how customers would use Amazon Pay in stores, as if it would be by pushing their phones or scanning a QR code. But Amazon has incorporated QR codes into their own stores, suggesting that it can do the same if other brick stores sign in. It would put it closer to China's e-commerce giant Alibaba and the Alipay platform than a competitor to Apple Pay, based on NFC technology.
There are a number of benefits QR codes have over NFC codes. Lower end smartphones have all cameras that can be used to scan QR codes, while only a small percentage of the phones have NFC codes. It is also less expensive and possible for a small business owner to print some QR codes and tape them to a wall or desk, rather than investing in an expensive NFC terminal.
These benefits, plus difficulties with getting approved credit cards, and the fact that Alipay and its rival WeChat Pay, already widely used, have made mobile payments through QR codes scattered in China. They also see adoption in India. While Amazon has no presence in China, it expands its efforts in India and internationally in general. Later down the line, Amazon Pay QR code option could potentially attract global customers and make it competitive against an Apple Pay extension. We have reached Amazon for comment.
The kind of broad decision of mobile payments has simply not happened in the US, where only a handful of retailers today accept Apple Pay, Samsung Pay, Chase Pay and so on. . And attempts to get QR codes adopted as a popular payment method have failed. The slow adoption is both a challenge and a threat to Amazons current plans, but it is also an opportunity to seize the market while still relatively good .