On Tuesday, Amazon.com, Inc. (NASDAQ: AMZN) announced that it would offer a 45% discount on its Prime membership to people who receive government assistance.
Amazon will offer the memberships to low-income shoppers at $5.99 per month instead of $10.99 per month, including free shipping and unlimited streaming of movies and TV shows with Prime Video. According to Amazon, customers will need to have a valid EBT card to be qualified for the discount. The EBT card is used to disburse funds for food stamps and other government aid programs.
“We designed this membership option for customers receiving government assistance to make our everyday selection and savings more accessible, including the many conveniences and entertainment benefits of Prime,” Greg Greeley, the Vice President of Amazon Prime, said in a press release.
By offering discount, Amazon is expected to attract low-income customers and steal sales from low-price competitors like Walmart. According to the Wall Street Journal, low income customers are “a big opportunity”, but some of them still have problems with bank accounts and credit cards.