Why has Amazon introduced a “top up” service?
The announcement that Amazon is bringing a cash “top up” option to the UK is welcome news to those who remain unbanked.
According to Financial Inclusion Annual Monitoring Report in 2015, there are 1.5 million adults in the UK who fall in this category. While traditional card payment methods remain the most popular form of transaction in the UK, offering the public a variety of payment options is sensible business.
This “Top Up” solution method is a familiar process – equivalent to topping up a mobile phone – and a concept that is certainly popular in other parts of the world, such as South America, which does not rely on card payments as much as the UK.
Adding a cash payment option could lead to additional revenue by reaching households that would normally not use Amazon, due to its current payment offerings. Amazon is showing retailers how to effectively utilise cash in a digital world, while also providing the benefits of e-commerce to those that can’t get a credit card or bank account.
This is something other e-commerce businesses could take inspiration from. It’s important retailers can offer a variety of online payment methods to ensure they meet the needs of all consumers and don’t miss out on untapped potential business.