E-commerce company, Amazon, is now planning to step into the banking sector too. The huge online shopping company has already stepped up in this direction. Amazon is offering unified payment services in India and Mexico and is actively contacting for investment and acquisition of finance-technology startups. Bloomberg said this in reference to the CB Insight’s Research Report.
In India, Amazon has a cash-picking service from home-to-house, which also allows customers to load money in a digital wallet. It has acquired or invested many startups here, including Bank Bazaar and Emvantage Payments. In Mexico, Amazon is offering cash payment services, which is considered as an option for credit and debit cards.
The finance industry is anxious that Amazon and other technology companies are infiltrating in their area. In the US, former chief executive of national banks Keith Noreika had said last year that there was a need to think again about banking and commerce. According to a survey by Infosys, half of the bank and credit union are considered as big tech companies to be a threat to themselves.
“Amazon, Google, and Facebook have two important things when it is about consumer payments and loans, relationship with data and customers,” said Brendan Walek, managing partner and co-founder of Fifth Wall Ventures. It is certain that they will go further in the finance sector to take benefit of this advantage.
Amazon does not offer a large number of traditional banking services in the US, but its impact on the US financial system is quite aggressive. More than 3.3 Million people use the company’s payment system. According to the research report, it has provided more than $3 Billion in loans to small business people connected to their platform since 2011. Last year, the company introduced Amazon Cash, through which users can load the fund in their Amazon account.