Customers with a valid Electronic Benefits Transfer card which is used for programs such as the Supplemental Nutrition Assistance Program, also known as food stamps can now pay $5.99 a month for Prime membership, which offers free shipping, as well as streaming of certain movies, TV shows and other entertainment, according to sources.
The online leader Amazon is offering a discount on its pay by month Prime Membership for people who receive government assistance. This has positioned Amazon as an even greater competitor to retail giant Wal-Mart.
Customers with a valid Electronic Benefits Transfer card which is used for programs such as the Supplemental Nutrition Assistance Program, also known as food stamps can now pay $5.99 a month for Prime membership, which offers free shipping, as well as streaming of certain movies, TV shows and other entertainment, according to sources.
In January, the U.S. Department of Agriculture announced a pilot program enabling food stamp participants in a few states to buy their groceries online through Amazon, along with six other companies.
Analysts say the lower Prime price is a way for the e-commerce giant to build its customer base.
Walmart has gained momentum in its online business, seeing its e-commerce sales soar 63 percent in its first quarter, up from a 29 percent increase the previous period. It now offers free-two-day shipping for online orders of its most popular items with a purchase of $35. Online shoppers who collect their purchases at a store get extra discounts. And Walmart has dramatically expanded its online offerings – though it’s still far behind the hundreds of millions of products at Amazon.com.
Amazon says it is working on ways to include other government-assisted programs in the future that do not utilize EBT cards.
