E-Commerce Payment Solutions: Checking Accounts and Future Opportunities
This article explores the role of checking accounts in e-commerce, highlighting Amazon's plans to enable minors to shop independently via dedicated checking accounts. It discusses current procedures, future initiatives, and how these developments aim to enhance young consumers' shopping experiences and foster early brand loyalty.
E-Commerce Payment Solutions: Checking Accounts and Future Opportunities
While checking accounts do not earn interest like savings accounts, they offer benefits such as no minimum balance and ease of access for everyday transactions. Customers typically use checking accounts or credit cards for online shopping. However, those under 18 cannot open bank accounts, limiting their options for online purchases. Big e-commerce platforms like Amazon are exploring ways to enable minors to have Amazon-specific checking accounts, using parental information and banking partners. This initiative aims to boost youth engagement and create early brand loyalty.
For adults, Amazon allows linking US checking accounts during checkout by providing account and routing numbers, with the accounts required to be ACH-enabled and linked to U.S. banks. Verification involves submitting government-issued IDs. Currently, savings accounts are not compatible with Amazon payments, making checking accounts the primary option.
