Grocery delivery services tend to fall into the category of “not so competitive” as uptick by consumers has been traditionally lacking. But Amazon is always a company to watch, and as this article points out, has a CEO at the helm who is in it for the long term.
From Retail Customer Experience:
“It is a very convenient service, but picking, packing and delivering grocery orders is expensive,” said former technology vice president Nadia Shouraboura, in the article. “Just like apparel, the grocery business is both large and ripe for innovation, so I wouldn’t be surprised to see Amazon be very persistent and patient … Jeff always thinks long-term.”
What does this means for debit issuers? A lot if Amazon is successful or even moderately successful.
Groceries and personal products are the mainstays of debit transactions, and if consumers use a credit card on Amazon, then that’s what they’ll use to pay for these items as well, potentially shifting transactions out of financial institutions that don’t also have a credit card relationship with a consumer or to cards that offer enhanced rewards for supermarket purchases. Gaining consumers’ confidence in using their debit card for online purchases or placing a branded credit card in accountholders’ wallets should be key activities for U.S. debit issuers and Amazon’s initiative is just one of the reasons why it’s so important.
Click here to read more from Retail Customer Experience.