"Amazon.com Inc. is offering to pass along the discounts it gets on credit-card fees to other retailers if they use its online payments service, according to people with knowledge of the matter, in a new threat to PayPal Holdings Inc. and card-issuing banks.Amazon Offers Retailers Discounts to Adopt Payment System - Bloomberg
The move shows Amazon is willing to sacrifice the profitability of its payments system to spread its use. Swipe fees are a $90 billion-a-year business for lenders such as JPMorgan Chase & Co. and Citigroup Inc., networks including Visa Inc. and Mastercard Inc., and payment processors like First Data Corp. and Stripe Inc., which pocket a fraction of every sale when shoppers swipe cards or click “buy now.”"
Thursday, May 03, 2018
Amazon Offers Retailers Discounts to Adopt Payment System - Bloomberg
For another Amazon category compression case study, see Amazon Launches Own Pet Product Brand, Wag; Starts With Food (Bloomberg)