Amazon Will Soon Accept EBT and SNAP Benefits

Finance

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Food

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General Commentary

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Past Perspectives


Internet powerhouse Amazon is gearing up for retail war with Walmart in what some are calling the “Great Battle of the Low-Income Dollar.” Amazon is making strides to make its services more accessible to people in lower-income brackets.

Amazon has dropped the price of its 2-day Prime delivery membership from $10.99 to $5.99 for recipients of government assistance. Plans are also underway to accept food stamps, known as EBT or SNAP in many states, as payment for groceries. This move clearly aims to capture a demographic that shops heavily at Walmart.

To access these exclusive benefits, users must enter a valid Electronic Benefits Transfer (EBT) card number into the system. While food stamps can’t be used to pay for the Prime membership itself, they can be used for grocery purchases. Earlier this year, Amazon also introduced Amazon Cash, a payment method designed for customers without bank accounts. Amazon Cash lets users add funds to their accounts at retail locations like CVS and Sheetz gas stations.

Clearly, this is another marketing strategy targeting lower-income consumers.

Ultimately, these new services could significantly reduce commuting costs for those without reliable transportation to stores. However, Walmart will likely not be fazed by Amazon’s plans anytime soon.