Remittance firm Western Union has unveiled a new payment option that allows Amazon.com customers in the Philippines to pay in local currency for their Amazon.com purchases.
The service is being offered initially in 10 countries – Chile, Colombia, Hong Kong, Indonesia, Kenya, Malaysia, Peru, the Philippines, Taiwan, and Thailand – enabling customers who prefer to pay in cash to shop Amazon.com’s vast product selection.
Western Union’s platform is powering Amazon’s new cross-border payment option, called Amazon PayCode, by processing the complex foreign exchange, settlement and money movement requirements for international e-commerce transactions.
After selecting PayCode on the Amazon.com checkout page, customers will be sent a code, along with instructions on how to pay in person at a participating Western Union agent location.
The move by Western Union and Amazon will provide greater access to online goods for customers who have largely been excluded from e-commerce shopping due to lack of accepted payment methods.
Forrester Research estimates that cross-border shopping will represent 20% of e-commerce by 2022, with sales reaching $630 billion. Choice, quality and cost are the main motivations for customers to shop online from overseas, but there are challenges and concerns about the lack of payment options for those who prefer to pay in person or those who do not have access to international credit cards or debit cards.