Amazon is constantly trying to grow their business by tapping into new industries. Their on-demand online shopping has changed consumer buying habits and changed how people view brand loyalty. How do you think Amazon will change the dynamic of banking, their latest targeted industry?
Control Over Process
In an effort to control the entire payment experience, Amazon is looking to get into the banking industry. This would give them a competitive edge on the acquiring side by controlling everything from start to finish. Becoming a bank would enable Amazon to begin to move more payments between internal users as well as save money on fees, further enabling them to drop prices. These changes are beneficial to the company as well as the consumer. How could this affect your business?
Affecting Consumer Habits
As Amazon grows, they continue to leverage their influence to make changes in banking, consumer preferences, and habits. The online giant changed how people shop by shifting the preference to click and mortar versus traditional retail. With the acquisition of Whole Foods in 2017, the grocery industry has changed immensely. Delivering groceries is the newest trend for grocers due to Amazon changing how the industry operated.
Amazon entering the banking game poses the question, “How will the industry change?” One possibility is Amazon may begin offering it’s own credit card much like Target’s credit card. This would allow them to give Prime members a chance to earn money back on purchases as well as enable Amazon to lower prices.. In a world where no one is brand-loyal, Amazon has been able to consistently keep customers around. Entering the banking industry may bring more businesses to the platform and more customers to their websites, thus strengthening their brand.
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