Ensuring accessibility, affordability and choice with a customer-first approach to payments
Amazon’s payment innovations cater to diverse customer needs while empowering small and medium businesses with comprehensive solutions.
Amazon accepts more than 30 different payment methods across its online stores and digital services in over 35 countries, says Mr Srinivas Rao, Amazon's director of digital and emerging payments. Photo: Amazon
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Against the backdrop of rapid evolution in the world of online commerce and digital services, part of the reason Amazon has remained at the forefront is thanks to its unwavering commitment to earning the trust of customers. In the payments space, this means constantly evaluating ways to reduce customer friction while ensuring that every transaction between customers, sellers and Amazon is safe, secure and trustworthy.
To adapt to shifting customer needs, Amazon relentlessly seeks ways to provide payment options that maximise choice and level the playing field for the underbanked. What remains constant, however, is the merchant’s dedication to fraud prevention and data security.
“Payment inclusivity is the future of global commerce,” said Mr Srinivas Rao, Amazon’s director of digital and emerging payments. “To meet the diverse needs of the communities we serve, we accept more than 30 different payment methods across our online stores and digital services in over 35 countries.”
PROVIDING CUSTOMERS WITH MORE OPTIONS
In recent years, new payment methods – such as pay-by-bank instant payments and buy now, pay later models – have risen in popularity around the world. In response to evolving customer preferences, Amazon has forged new partnerships to provide accessible financing alternatives to traditional credit. Furthermore, it has introduced value-added services such as insurance and bill payment in select countries as well as unveiled innovative payment options for domestic and cross-border payments.
To cater to customers in Singapore seeking simple, fast and reliable payments, Amazon integrated PayNow – an instant funds transfer service launched by the Association of Banks in Singapore – in May 2022. Covering 95 per cent of local banked customers, PayNow enables payments to be made to merchants through a QR code scanned via their bank or non-financial institution’s mobile application.
In addition to being a service that is available to businesses of all sizes, PayNow does not require customers to have a linked credit or debit card. This ensures that even those new to online commerce or with underserved financial needs can shop on Amazon.
HELPING SMALL BUSINESSES GO DIGITAL
While Amazon is renowned for its expansive product portfolio and seamless deliveries, many might be surprised to learn that a significant portion of products on Amazon’s virtual shelves – over 60 per cent – originates from small and medium businesses (SMBs).
“We admire the entrepreneurial spirit of our small business partners and remain committed to supporting them,” said Mr Rao. This commitment extends to helping SMBs and micro-merchants scale their businesses by facilitating working capital loans. Amazon collaborates with banks and other financial institutions to provide flexible loan options and promote the digitisation of payments.
In India, Amazon has played a pivotal role in helping over 8.5 million offline small business owners and entrepreneurs transition to digital payments. This achievement is possible due to Amazon’s infrastructure that spans over 350 towns and cities.
“With our fully digital merchant experience, businesses can sign up to accept payments via Amazon Pay,” said Mr Rao. “This enables merchants to transition from predominantly cash transactions to processing payments using Amazon Pay’s QR code, increasing convenience and offering more opportunities for them to scale their business.”
Across the globe, Amazon's third-party businesses benefit from secure and flexible payment methods, including foreign currency conversion for international sellers.
PUSHING THE ENVELOPE OF INNOVATION
Amazon remains committed to exploring innovative payment methods, including instant payments and central bank digital currencies (CBDCs). It is engaging with banks to share insights on customer-focused innovations and merchant use cases, including support for transactions like refunds and recurring payments.
It has also participated in two CBDC initiatives, the Digital Euro Project sponsored by the European Central Bank and Project Rosalind by the Bank for International Settlements, working alongside public and private sector entities to investigate the practical considerations of potential CBDC implementation.
Additionally, Amazon has partnered with the Monetary Authority of Singapore on Project Orchid, a multi-year, multi-phase exploratory project that examines the various design and technical aspects pertinent to the creation of a retail CBDC system for Singapore.
Mr Rao emphasised that through collaborations with financial institutions and central banks, e-commerce platforms like Amazon can play a part in ensuring that customers have access to a range of digital finance options.
“We’re focused on eradicating inefficiencies in cross-border payments. By doing so, we create opportunities for businesses and level the playing field for local entrepreneurs, enabling them to compete with regional and global players.”
Find out how Amazon is creating a more efficient and inclusive financial landscape by partnering customers, merchants and policymakers.
Learn more about the future of finance at the Singapore FinTech Festival from Nov 15 to 17, 2023.
