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Amazon Cash

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Re: Amazon Cash

#61

Post by beamatronic »

sf_rob wrote: post #46
webkike wrote: post #26

If this is implemented as an in-store pickup location with a little terminal that allows you to buy items with cash anonymously, I'd love the concept.

This puts the risk on Amazon, so I'd be curious to see if this would be worth the no-shows. Then again their Lockers already auto-return after a few days, but I think that having "already paid" is likely a commitment device. I am surprised that they didn't use Amazon Locker as a logical hub for adding cash credit.

Seriously, just leave some cash in a locker

Re: Amazon Cash

#62

Post by beamatronic »

ryanSrich wrote: post #15
sokoloff wrote: post #5

Earlier quoted context omitted.

The use case is that you have cash (literally folding money) in your hand and the store is the place to turn that physical cash into electronic credit in your Amazon Balance.

Maybe I'm being obtuse, but why would anyone want to do that? Could you not use a credit card, debit card, or gift card?

Won't they miss out on all the perks of credit cards (i.e. Discover cash back rebates, airline/hotel miles, etc )

Re: Amazon Cash

#63

Post by Grue3 »

This seems inconvenient. You need to load cash into account before being able to spend it. How many online stores in card-deficient countries operate is that first you make the purchase, then you pay for it at some physical location (ATM, grocery store chains, etc.). Having to preload cash first allows for a situation where the price of items in your cart unexpectedly rises and you don't have enough money in the account and you have to go fill it up again.

Re: Amazon Cash

#64

Post by wscott »

skookum wrote: post #38
wscott wrote: post #10

This is another round of the "Amazon vs Walmart" war. People without banks or credit cards currently shop at Walmart. Now it is much easier for them to shop at Amazon.

"Much easier than before" or "much easier than at Walmart"? I buy the former, but I doubt that many of the cash-only customers shopping at Walmart live in locations or lead lifestyles conducive to receiving regular package deliveries easily. I'm skeptical that payment logistics are their biggest barrier to Amazon shopping. I suspect many of us on HN have a distorted view of how hassle-free online shopping is because…

Absolutely. Much easier to shop at Amazon than before. They still have a long way to go to compete with Walmart in this area. Just pointing out the target audience for this change.

Re: Amazon Cash

#65

Post by xraystyle »

andrewfong wrote: post #42
skookum wrote: post #38

Earlier quoted context omitted.

"Much easier than before" or "much easier than at Walmart"? I buy the former, but I doubt that many of the cash-only customers shopping at Walmart live in locations or lead lifestyles conducive to receiving regular package deliveries easily. I'm skeptical that payment logistics are their biggest barrier to Amazon shopping. I suspect many of us on HN have a distorted view of how hassle-free online shopping is because…

> I suspect many of us on HN have a distorted view of how hassle-free online shopping is because we live in buildings or neighborhoods where packages can be left without signature That's what Amazon Locker is for. Not sure how widespread this is though. I view this less as Amazon competing directly with Walmart than a Safeway or CVS using Amazon to provide more value to its current customer base.

> That's what Amazon Locker is for.

Not sure if it's 100% accurate, but as an example, there doesn't seem to be a single Amazon locker location in the entire state of Mississippi according to Google Maps.

Re: Amazon Cash

#67

Post by mabbo »

samstave wrote: post #56
mabbo wrote: post #51

It's a clever business move for all involved. Amazon skips the credit card fees. The businesses working with them probably don't have to pay Amazon the money for a few weeks, meaning they get to carry an interest-generating balance in the meantime. If you don't spend all of the money you put on your account, then Amazon gets to hold that cash until you do, generating interest on the money held. All the while, the cus…

Yep, such an interesting 'innovation' in fintech.... I wonder who will come from the woodwork to oppose this? Curious though; can you ELI5 who actually pays the interest? --- I met a banker the other day and I asked him simply "how does one actually found a bank" his reply; "Oh it's really simple, have $30,000,000 and you can create your own bank!" Simple!

> Curious though; can you ELI5 who actually pays the interest?

ELI5: Lots of people have business ideas that can make money, but often they need to have a small pile of money in order to make more money. Let's imagine you are such a person. I lend you money to start your business, then your business makes lots of money, and you pay me back. That's a good deal for you, but not for me. Your business might not work out, and you might lose all my money. I'll still lend you the money, but I want you to pay me back more money since I took this risk for you.

That's where the money paid in interest comes from.

Similarly, you might replace 'start a business' with 'buy a house' or 'buy a car'. You don't have enough money to do so right now, but you know that your life will be improved by having these things, so you borrow money to do them. The people lending you the money won't do it for free.

Less ELI5: Alternatively, the businesses holding this money for four weeks will estimate what the lowest amount they'll be carrying over the next 5 years will be, then just go and invest that amount in stocks, bonds, etc. Since their balance will never fall below that amount, the money is effectively an interest-free loan from Amazon that they use to make interest-earning investments with.

Re: Amazon Cash

#68

Post by prostoalex »

Grue3 wrote: post #63

This seems inconvenient. You need to load cash into account before being able to spend it. How many online stores in card-deficient countries operate is that first you make the purchase, then you pay for it at some physical location (ATM, grocery store chains, etc.). Having to preload cash first allows for a situation where the price of items in your cart unexpectedly rises and you don't have enough money in the acco…

Seems to be somewhat common in Eastern Europe, where payment kiosks are located at many convenience stores. In a card-less society they're used for utility bills, mobile operator account top-up, settling government fees and fines, buying lotto tickets, etc. Amazon would be just another option on a kiosk like this https://i.ytimg.com/vi/qYEh0TtsW5c/maxresdefault.jpg

Re: Amazon Cash

#69

Post by rdtsc »

samstave wrote: post #56
mabbo wrote: post #51

It's a clever business move for all involved. Amazon skips the credit card fees. The businesses working with them probably don't have to pay Amazon the money for a few weeks, meaning they get to carry an interest-generating balance in the meantime. If you don't spend all of the money you put on your account, then Amazon gets to hold that cash until you do, generating interest on the money held. All the while, the cus…

Yep, such an interesting 'innovation' in fintech.... I wonder who will come from the woodwork to oppose this? Curious though; can you ELI5 who actually pays the interest? --- I met a banker the other day and I asked him simply "how does one actually found a bank" his reply; "Oh it's really simple, have $30,000,000 and you can create your own bank!" Simple!

Yes I know someone who started a bank with some partners. I had the same surprise "What do you mean you can just start a bank if you want?". It is not as hot and happening as a startup, but it turned out pretty well. A lot of regulatory red tape though.

Re: Amazon Cash

#70

Post by tuna-piano »

I think many people here are missing the (probable) point of this. If you're wondering "who could use such a service?" - then this service probably isn't for you.

7% of US households are unbanked, and 20% are underbanked(1).

Many people are paid in cash, or simply cash their checks at Walmart or a check cashing place. The money never touches a bank account, and they don't have a credit card.

Paying for things with cash in similar ways is actually pretty common in other countries. When booking an airline ticket in Indonesia, I was surprised that there wasn't even an option for credit card payment - after clicking "purchase", it gave me a code and said to go to the 7/11 equivalent (which might have even been 7/11), give the counter my code and cash for the ticket.

[1] - https://www.fdic.gov/householdsurvey/

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