COMMENTARY
Dec. 20, 2018 | by Jeff KAGAN
The world of mobile pay keeps expanding. Now Amazon.com digital wallet called Amazon Pay is starting to spread into the retail world competing with Apple Pay, Samsung Pay, PayPal, Venmo and countless other digital payment competitors. If done right, this could be a big win for Amazon. However, they will have to solve one big problem first.
The problem Amazon must solve is simple. They have been competing with and winning against many traditional retail stores. These stores see Amazon as the enemy. They see themselves in a competitive battle. Accepting Amazon Pay in their retail stores seems like letting the enemy in with a Trojan horse.
Mobile pay is growing with Apple Pay and many others
While that's all true, a decision has to be made by the retail world. I think some retailers will look at this as an opportunity and others will look at this as a threat. Those who see it as an opportunity may move quickly to partner with Amazon Pay. Those who see it as a threat may not.
The initial resistance may soften over time. They may change their mind and accept them at some point down the road.
With so many choices of mobile pay or digital pay options, I think most retailers will look at Amazon Pay as a separate entity from their competitor Amazon.com. Competing and partnering has been going on for a long time. Consider Apple and Google. They both compete and are partners in many ways.
If Amazon Pay is successful, retailers will be forced to opt-in
One of the big complaints I hear from Costco customers are that they only take Visa. No American Express. No MasterCard. No Discover cards. Nothing but Visa. When customers reach the upper limits of their credit card, they like to pull out another card. But if they only have one Visa, they are stuck.
It's about whether the retailer cares about the customer or not. It's about whether the retailer wants to give the customer all options or not. If they do, then they will accept all these methods.
Some retailers have chosen one mobile pay option and not another. This is often frustrating if the customer chooses something different. That is an impediment to the customer doing business with the company.
Retail companies need to make it easier, not harder for customers to do business with them. If not, most will lose market share. Companies need to make it easier, not harder for customers to do business with them if they are to continue to grow.
That's why I think Amazon Pay could have a successful future as a payment method in the retail world, even though these retailers are arch competitors with Amazon.com. Companies who understand there are different parts of Amazon, will do it. Companies who don't, may not. Not in the early stages anyway.
It's important to remember, we are still in the very early stages of this new mobile pay revolution. The best is yet to come.
Cover photo: iStock
Topics: Mobile Apps, Mobile/Digital Wallet, Mobile Payments, Retail
Companies: Amazon
Jeff KAGANJeff Kagan is a Wireless Analyst, Telecom Analyst, speaker, author and consultant. Over 30 years he has followed the Customer Experience through technology like wireless, wire line, telecom, Internet, cable TV, IPTV, Cloud, AI, Mobile Pay, FinTech and more. Email him at This email address is being protected from spambots. You need JavaScript enabled to view it.. www
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