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What would accepting a non-Amazon controlled crypto even do for them? The transaction fees for BTC are low right now but wildly variable, and would add another
by filmgirlcw 5y ago
What would accepting a non-Amazon controlled crypto even do for them? The transaction fees for BTC are low right now but wildly variable, and would add another layer of complication to Amazon's systems. Amazon probably has the lowest transaction fees in the world, I would guess, based on the volume of transactions it has. It has credit card partnerships with a number of banks and issuers.
The speculative nature of accepting Bitcoin or another crypto is all well and good, but I can’t see shareholders super stoked to see the less profitable side of the business accepting money this way. If Amazon wanted to speculate on BTC, it could buy it same as any other entity.
Sure, if Amazon had its own coin, that would be interesting, but not only would that face the same scrutiny that Facebook's Libre faced (possibly even worse, given Amazon is the third or fourth richest company), for Amazon users, there is no clear incentive to use an Amazon coin versus a normal credit card or whatever local payment systems Amazon might use. Speaking as a consumer, I really don’t care about what payment method is most profitable for any of the places I shop. In fact, I almost exclusively use American Express, which has the highest transaction fees (obv. I have a Mastercard and a Visa for certain countries), because it also gives me the most value/best protection/rewards I enjoy. Hell, I have an Amazon American Express card that gives me 5% back on all Amazon purchases — so any Amazon coin or other crypto would have to offer me a better return.
I get the appeal in areas where Amazon isn’t as dominant as it is, in say, the US. But even then, I would think more basic logistical issues relate to storing and delivering goods would be higher priority than a payment method that has lower transaction fees.