Amazon Persuades Mexico to Introduce Mobile Payment
2019-03-14 13:26 Thursday
World retailing giant Amazon has successfully persuaded the Mexican Central Bank to employ a new mobile payment system for shoppers. The new payment system called CoDi will allow consumers to complete payment online by scanning the QR code. It would be the first time the world's largest online retailer offers such scanning technology in Mexico and could eventually open a new customer base in a nation where more than half of the population has no bank account.
Due to the mainstream absence of bank account, online retailing in Mexico still accounts for less than 4% of sales. Amazon predicted that the online shopping in Mexico would reach US$14 billion by 2022. And that's why Amazon has invested a huge sum of money in Mexico over the past years.
Amazon still hold that Mexicans' desire for online shopping is high, and what keeps them away is the fear of online fraud. The new mobile payment system will dispel the fear of online fraud as it uses QR codes.
According to the latest research, only 3.9% of retail sales were made online in Mexico last year.Amazon resolves to encourage more local customers without bank account to shop online. To promote the ambition, Amazon even launched its first debit card last year, targeting consumers without credit cards.
Thanks to a range of marketing efforts, Amazon sales in Mexico has been growing year after year. In 2017, it generated US$502 million in 2018, compared with $243.9 million it generated in the previous year.
Meanwhile, Amazon is also increasing its investments in storages and distribution centers, with an aim of cutting costs for both sellers and consumers. In addition, Amazon is also considering offering free shipping to attract more consumers.