Amazon is reportedly offering retailers discounts when they use Amazon Pay. Although it hasn't been reported whether or not this extends to small and medium-sized businesses (SMBs), new data from Cowen and Company found that many are not even aware of the service.
Indeed, seven in 10 US SMBs surveyed in April 2018 said they were unfamiliar with it. And just 11% said they were considering Amazon Pay as a payment option.
Conducted prior to reports of Amazon’s discounting strategy, awareness and consideration of use is bound to increase, but Amazon may need to sweeten its offer through added perks to entice SMBs.
In Cowen and Company's survey, 41% of respondents said they would consider accepting Amazon Pay if it includes access to other Amazon services of value like delivery fulfillment and data and analytics, or offers for Amazon Prime subscribers, who now exceed 100 million worldwide.
Another 30% said they’d adopt Amazon Pay if it was more affordable than competitors like PayPal and Apple Pay, and included add-on services. About a quarter of SMBs respondents felt the decision would be made on Amazon Pay’s competitive pricing alone.