The world of e-commerce is an interesting one. Thanks to Amazon, it has seen a considerable spike in financial news headlines. The e-commerce giant is continuously increasing its dominance and just recently launched the Amazon Top Up service in the U.K.
Sometimes in April, Amazon launched the Amazon Cash program in the US. Now, the e-commerce giant has added the ability for U.K. users to pay for goods and services on it’s the platform with cash under a new name known as Amazon Top Up. With this service, UK shoppers are now allowed to load their accounts with cash between £5 and £250 in a single Amazon top up transaction.
How Amazon Top Up Works
Simply put, Amazon Top Up means anyone can head down to any of the available pay points and make a cash deposit into their Amazon account which will instantly be made available for usage. The beautiful thing is that, in addition to the instant availability of funds to spend on Amazon.co.uk, the service is completely free. The downside, however, is that users are restricted from using the fund to purchase Amazon Gift Cards.
The first thing to do in order to be able to use the Amazon Top Up service is to get a unique Amazon Top Up barcode. You can generate the code on your account by using either your Amazon app or on the website. This unique barcode is linked to your account and it is what you use to make deposits to your account. All you do is go to one of the thousands of existing PayPoint locations in convenience shops, grocery stores and petrol stations across the U.K. the cashier then scans your barcode and deposit the cash to your Amazon Top Up balance. Although the loaded Amazon Top Up cash can’t be withdrawn, it is available to spend from the Amazon Top Up account for a period of 10years after which it expires.
As mentioned earlier, in April, the company launched a similar service in the US, the Amazon Cash. With a large Amazon Prime customer base, the new cash payment service is a way of making things easier for those who are not financially buoyant enough to subscribe to the premium membership service.
As of today, about 1/3, approximately eight million customers are subscribed to the Amazon subscription service in the U.K. This suggests that there is a high chance of successfully operating the new Amazon Top Up service in the country. Furthermore, recent surveys indicate that about 1.5 million residents of the U.K. are unbanked and unable to operate any financial institutions or services like credit cards.
Whilst all of these figures indicates the high number of unbanked people in the country, which is also complemented by the small portion of people that thinks the internet is a risky avenue to conduct business transactions and make payments. This new Amazon service is an In-store service and it offers a solution that people will be more comfortable dealing with.
In summary, the future of the Amazon Top Up service in the U.K. is promising.