In Mexico, Amazon Debuts Cash Payment Service

The program is designed to guide more shoppers to online purchasing.

October 27, 2017

MEXICO CITY – This week, Amazon.com Inc. launched a new service in Mexico that allows customers to deposit cash payments at convenience stores to be posted to an Amazon account online, Reuters reports. Currently, Amazon is the country’s third biggest online retailer.

The strategy is aimed at helping shoppers who prefer paying in cash for online purchases, whether because of concerns about credit card fraud or because they receive their wages in cash. “I think there could be a population of new clients that would use this as their primary form of payment,” said Fernando Ramirez, product manager for Amazon Mexico.

In addition, the move could pull market share from Walmart de Mexico (Walmex), which has been pressing customers to visit online stores. “It will intensify the competition of e-commerce in Mexico, not just for Amazon and Walmex but for other players,” said Luis Willard, an analyst at GBM.

Amazon already offers the cash deposit option in the United States and Great Britain. Several Mexican convenience store chains, including 7-Eleven, accept the cash payments. Meanwhile, Amazon has also launched a new delivery service called Amazon Key that would put packages directly into customer vehicles.

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