Amazon working on a POS solution to take on Shopify, Paypal
Amazon is reported to be working on Project Santos which is a POS solution for merchants and businesses in an attempt to break into the offline payments market and integrate it with the online payments solution that it already has.
This is seen as a direct challenge to Shopify and Paypal which already have such POS solutions but the entry of Amazon into this space is expected to shake up the industry due to the sheer size and reach of Amazon and also due to the kind of control and dominance that it has in the online space. It is also reported that this solution would integrate with Prime, one payment technology, and the Flex package delivery service as well thus providing a wholesome service for merchants and businesses.
It does make business sense for Amazon to venture into this space as this would help to tie up online and offline payments for merchants into a single solution and all reporting, data analytics, and reconciliation can be done at a single place as far as the merchants are concerned and hence they would also prefer such a solution as all that they need would be available at the click of a button. Management of their sales and inventory would also become much easier for the small businesses and this is the advantage that Amazon would like to exploit in the long term.
The payments industry, both online and offline, has taken off over the last few months and it is only natural that many investors are investing in payments startups as they see the industry continuing to grow in the coming months with the digital payments taking over this space. This push has happened mainly due to the pandemic as we have seen many people beginning to use digital payments for the first time even for basic purchases and have since stuck to digital payments due to their convenience. With the pandemic now beginning to recede, the offline payments space will likely see users returning but again, companies like Amazon and Shopify are looking to mop up those payments as well by pushing their offline solutions and projecting an integrated solution for businesses and users as well. It remains to be seen how Shopify and Paypal would be responding to this challenge.