The high-tech and credit card giants of Amazon and Visa have reached a global agreement on the use of the latter’s credit cards. With this move, Amazon is settling the issue of credit card charges, which it considered excessive, threatening not to accept them in countries such as the United Kingdom.
From now on, customers in the UK will continue to use Visa cards, as announced by both companies. In addition, Amazon intends to reduce the charge by 0.5%, a rate that was imposed on Visa credit card transactions in countries such as Singapore and Australia, according to a report published in the relevant US CNBC news network. It is worth mentioning that Amazon had introduced this charge in 2021.
In January, he said he was no longer considering not accepting Visa credit cards in Britain, just two days before the measure took effect. At that time, the two interlocutors stated that they would continue their contacts, so that they could resolve their differences in a wider range.
Amazon remains committed to its commitments to be able to offer a comprehensive payment experience to its customers, which is both convenient and enabling options.” Amazon and Visa are already working together to come up with new products for flexible digital payments.
It should be noted that the American high-tech giant is putting pressure on Visa to reduce its charges, which are borne by retailers. Increasingly, the latter appear to be dissatisfied with the costs associated with operating large credit card networks, while they are also concerned about the strong and widespread influence of the Amazon giant in the international market. In addition, it should be noted that companies in the field of intangible payments and credit and debit cards, such as Visa, Mastercard and American Express, are now facing fierce competition from the new generation of financial service providers. These are start-ups, infinite in number, active internationally in financial technology, such as those who follow the “buy now, pay later” model, which is proving popular at younger ages.
The “open banking” method allows start-ups to effectively bypass the traditional methods of transaction represented by credit cards.