Retail tech giant Amazon has moved to expand its developing markets transactional capacities partnering with payment transfer specialist Western Union.
The strategic alliance, sees Western Union develop ‘Amazon PayCodes’, a transactional service which allows developing market customers to pay for shop items at Western Union transfer points.
The PayCodes programme will be initially rolled-out within the 10 developing markets of Chile, Colombia, Hong Kong, Indonesia, Kenya, Malaysia, Peru, Philippines, Taiwan and Thailand.
In its strategic mandate, Amazon details that it seeks to deliver greater connectivity to developing market consumers, supported by the reliable payment infrastructure operated by Western Union, leading expert’s in digital payment transfers.
Western Union and Amazon hope this move will provide greater access to online goods for customers who have been excluded from e-commerce shopping due to lack of alternative payment methods.
“Amazon PayCode leverages the reach of Western Union to make cross-border online shopping a reliable and convenient experience for customers who do not have access to international credit cards, or prefer to pay in cash,” said Ben Volk, Director, Payment Acceptance and Experience, Amazon.
At a retail level, PayCodes works by sending consumers an individual code along with instructions on how to pay in person at a participating Western Union agent location. When the consumer visits a Western Union agent location upon payment they will be asked for their Amazon PayCodes code and photo ID.
The ID must match the information provided during checkout on Amazon; the agent will then take payment and provide a receipt followed by a payment confirmation email from Amazon.
Amazon will then send a notification via email once the order has shipped.
Khalid Fellahi, SVP and General Manager of Western Union Digital, said: “This is a great example of two global brands innovating and collaborating to bring customers more convenience and choice.
“In a world where cross-border buyers and sellers are often located on different continents and in completely different financial ecosystems, our platform is ideally suited to solving the complexity of collecting local currency and converting it into whatever currency merchants need on the other end.”