Nov 30, 2017 - Economy

Amazon seeks to wean Mexico off cash

Patrick Semansky / AP

In an effort to encourage more Mexicans to shop online, Amazon is promoting a new payment system whereby shoppers can deposit funds into their Amazon accounts via kiosks at local convenience stores, Bloomberg reports.

Why it matters: Developing countries' e-retail sectors are hemmed in by their customers lack of access to credit cards. In places like India and China, e-commerce firms have worked around this by enabling delivery workers to accept cash, a solution that isn't viable in countries like Mexico where assaults and robberies are common.

The move is starting a trend. Latin America's largest e-commerce platform, MercadoLibre, is rolling out a similar program, while Walmart's Mexican division is installing cash-depositing systems at its stores as well.

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