MEXICO CITY (Reuters) – Amazon.com Inc launched its first-ever debit card on Tuesday in Mexico, a part of a push to encourage consumers with out financial institution accounts to purchase on-line.
Web retailers and brick-and-mortar chains in Mexico are investing closely in e-commerce because the sector features in recognition, though it’s nonetheless a small fraction of whole retail gross sales.
A part of the problem is attracting customers who’re cautious of on-line fraud and wouldn’t have entry to credit score and debit playing cards. Lower than a 3rd of adults in Mexico have bank cards, in accordance with a 2017 authorities report.
Amazon mentioned that Mexico was the primary nation the place it has provided a debit card, referred to as Amazon Rechargeable, aiming to offer clients a brand new technique to buy on its web site.
“Purchasers that don’t have a credit score or debit card will discover Amazon Rechargeable a simple and sensible option to convert money right into a fee technique,” mentioned Fernando Ramirez, Amazon’s product supervisor in Mexico, in an announcement.
Simple-access debit playing cards might assist pull folks into the formal financial system, particularly if tied to procuring promotions, Actinver analyst Carlos Hermosillo Bernal mentioned.
“How do you convey formality to the casual sector? It’s important to make a bridge,” he mentioned.
Buying chains usually supply credit score however hardly ever debit playing cards, Hermosillo Bernal added. Amazon’s card, backed by MasterCard and Mexican financial institution Grupo Financiero Banorte, could be loaded with money at comfort shops throughout the nation.
Amazon final October started providing a money fee system at comfort shops together with 7-Eleven, equally concentrating on consumers with out bank cards.
Reporting by Daina Beth Solomon, Modifying by Rosalba O’Brien