Amazon plans to start accepting cash at its automated convenience stores, responding to growing complaints that non-cash companies discriminate against impoverished and low-income buyers who are most likely to have no access to bank or credit cards.
reported by CNBC with confirmation from Amazon, will not be effective immediately. And we still do not know how Amazon will make the change. CNBC reports to an executive who says that "additional payment mechanisms" are approaching, and a spokesman said that he will eventually be able to "verify, pay with cash and then get his change".
This is an important Change to the Amazon model. Their Amazon Go stores, 10 of which have been launched so far, were built entirely around the concept of not being an ATM. Customers enter, scan their phone to identify their Amazon account, collect what they want and leave without paying. The cameras track customers in the store, automatically identifying what they collect, return and finally carry out with them. After leaving, the store will charge purchases to your Amazon account.
Because stores depend on Amazon accounts, it means they are useless for buyers who do not use Amazon. It also means that they are useless if you do not have a phone, which inherently creates a barrier for low-income consumers. According to the Pew Research Center, approximately 1 in 3 adults in the US UU That they earn less than $ 30,000 a year do not have a smartphone.
Amazon developed the convenience store model without payment as it began to expand in the physical retail market. In addition to being flashy and high-tech, stores eliminate the need for ATMs, which reduces Amazon's immediate overhead costs. Adding a way to pay cash, either from ATMs or monitored self-service stations, means that Amazon will probably have to start hiring more employees. Their stores already employ people to replace them and prepare food.
Cashless stores have become more common in recent years, but lately, governments have begun to refuse. As CNBC points out Philadelphia banned cashless stores last month, and New Jersey followed a week later. For a long time, Massachusetts has also banned the practice.
Making these changes will allow Amazon to take its stores to more locations, and it could be a wise commercial decision since Amazon considers using this technology in larger stores. It is also just what needs to be done to make sure everyone can buy groceries. There is no deadline for when cash will begin to be accepted.