ENGLEWOOD, Colo.—In separate deals, Amazon has announced new financial partnerships with Western Union and American Express.
Western Union said it is joining with Amazon to launch a new payment option that allows international shoppers to pay in person, in local currency where available, for their online purchases using the Western Union agent network.
“There are people in the world who want greater access to Amazon’s huge product selection but paying for those purchases has been a real obstacle for many customers,” Hikmet Ersek, president and CEO of Western Union, told the Associated Press. “We’re leveraging our money movement platform to make it easier to shop global and pay local. By facilitating the complex foreign exchange and settlement process, we’re opening up more consumer choices and access to online shopping for tens of millions of potential new Amazon customers.”
Forrester Research estimates that cross-border shopping will make up 20% of e-commerce by 2022, with sales reaching $630 billion. Choice, quality and cost are the main motivations for consumers to shop online from overseas, but there are challenges and concerns about the lack of payment options for consumers who prefer to pay in person or consumers who are not comfortable using online payment methods, the AP reported.
American Express Partnership
Meanwhile, American Express and Amazon are offering a new credit card for small businesses designed to alleviate some of the cash flow problems business owners can encounter.
The Amazon Business American Express Card offers special rewards for purchases made on Amazon.com, Amazon Business, Amazon Web Services and at Whole Foods, MarketWatch reported.
The cash back percentage and length of the deferred interest period depends on whether the small business owner is an Amazon Prime Member.
Amazon Prime members can choose between 5% back or a 90-day interest free period. Non-Prime customers can choose between 3% back or a 60-day interest free period, MarketWatch explained.