In recent times, the landscape of payments and digital wallets has become increasingly crowded. The decline of digital payment pioneers like PayPal (NASDAQ:PYPL) and Square (NYSE:SQ) can partly be attributed to the formidable presence of FAANG giants, which are aggressively pursuing a larger share of the payments market.
Undoubtedly, the global payments industry is an immensely lucrative sector, drawing the attention of all major players. While the AI battles dominate Wall Street’s focus, the spotlight on financial technology and digital payments is where significant developments are expected. FAANG corporations are striving to expand their range of fintech offerings within their portfolios.
Both Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOG) have utilized their extensive networks effectively to strengthen their positions within the digital wallet arena. Apple has demonstrated a strong commitment to payments and fintech, integrating intriguing products like the Apple Card and a new high-interest Savings Account into its wallet. However, reports suggest that Goldman Sachs (NYSE:GS) is facing financial challenges from its involvement in these products and is seeking to exit the partnership.
Although Apple and Alphabet often receive the most attention for their impressive digital wallets, Amazon (NASDAQ:AMZN) is subtly positioning itself for a significant advancement of its own.
Impressive Moves by Amazon in the Payments Landscape
Services like Amazon Pay and Buy With Prime have gained considerable traction recently. Buy With Prime offers comprehensive support, including payments, fulfillment, and 24/7 assistance, to merchants operating their own online stores. Amazon has streamlined the process for independent e-commerce businesses to access all necessary services for creating an optimal customer experience.
Notably, Amazon recently announced integration with the Canadian e-commerce platform Shopify (NYSE:SHOP). This move comes just a few quarters after Shopify cautioned its merchants against using the Buy With Prime feature. The shift in stance could be attributed to Shopify’s decision to divest from logistics with the sale of Deliverr and Flexport. Sometimes, cooperation might outweigh competition.
Amazon’s entrance into the Shopify ecosystem through Buy With Prime could significantly bolster Amazon’s payment initiatives as it seeks to penetrate new segments of the e-commerce market.
Amazon’s Palm-Based Point-of-Sale Payments Plans
Amazon has ambitious plans to introduce hand-scanning technology in 500 of its Whole Foods stores, allowing customers to make payments using only their palms. This innovative concept could enable Amazon to carve out a portion of the market share currently held by Apple Pay and Android Pay.
Initially, this technology will be available at Whole Foods and select other locations. If successful, it might expand to a broader range of physical retail establishments. Given time, the convenience of using your palm instead of your phone for payments might overshadow traditional methods. Additionally, if Amazon’s palm technology resonates well with both merchants and consumers, Point-of-Sales (PoS) products, like those provided by Square, could face obsolescence.
However intriguing palm-based payments might be, there remain concerns about privacy and security regarding having one’s palm print stored in Amazon’s databases. Ultimately, the extent of its adoption will only become evident once the technology is accessible at local Whole Foods stores. Regardless, Amazon’s willingness to innovate reflects its determination to enhance its market presence.
In Conclusion
Amazon, a true disruptor, is progressively establishing itself as a dominant force in the payments sector – if it hasn’t already. Over the forthcoming five years, Amazon appears to be the FAANG member best positioned to amplify its share in the payments landscape. As Amazon delves into palm-based payments, it’s likely that Apple will continue expanding its digital wallet offerings, potentially with a different partner than Goldman Sachs.
Featured Image: Pexels
Author Faith Yakubu 
