Amazon launched its first debit card in Mexico to encourage online shopping without a bank account
Amazon launched its first debit card in Mexico in an unprecedented move to encourage online shopping by Mexican consumers without bank accounts, Reuters reported on Tuesday.
As e-commerce is getting hotter, Mexican online retailers and physical chain stores are investing more, although this only accounts for a small portion of total retail sales.
Part of the challenge is to attract consumers who are cautious about online fraud and customers who cannot get credit and debit cards. According to a 2017 government report,less than one-third of adults have credit cards in Mexico.
Amazon said that Mexico is the first country to provide debit cards. The card is called "Amazon Rechargeable" and aims to provide customers with a new way of shopping on Amazon.
Fernando Ramirez, Amazon’s product manager in Mexico, said in a statement: “Those customers without credit or debit cards will find it very simple and practical to use Amazon Rechargeable to convert cash into a payment method.”
Carlos Hermosillo Bernal, an analyst with Actinver, a Mexican investment consultancy, said that convenient debit cards help people enter the formal economy, especially when linked to shopping promotions.
How to formalize the informal industry? You have to make a bridge. "He said.
Hermosillo Bernal added: "Mexico's shopping chains usually provide customers with credit cards, but they rarely provide debit cards." With the support of MasterCard (Mastercard) and Grupo Financiero Banorte of Northern Bank of Mexico, Amazon's debit card can be used at convenience stores throughout Mexico.
Amazon has provided cash payment systems since October last year, for major convenience stores in Mexico, including 7-11 convenience stores, targeting consumers who do not have credit cards.