January 22, 2021

Philadelphia prohibits Amazon Go stores because you can not pay in cash

Philadelphia prohibits Amazon Go stores because you can not pay in cash


Amazon announced in 2016 a new store model, called Amazon Go, whose novelty was that it did not have ATMs to make the payments. This way, queues were not caused to pay, since All transactions are made wirelessly through the Amazon Go application and your Amazon account. After a year and a half of tests where only employees of the multinational company led by Jeff Bezos could buy, in February of last year he announced that these stores were open to the general public.

At the moment these stores are located in the USA. and they have had a great reception. So, it has stores in Seattle, Chicago, San Francisco, while new openings are expected in other cities of the American country such as New York. In addition, it is not ruled out that in the next few years this expansion will cross the US border and reach Europe.

However, the plans for more openings in the American country have met with a stumbling block. This is no other than the city of Philadelphia has approved a decree that obliges retail stores to allow payment in cash, an option that is not possible in Amazon Go stores. In this way, Philadelphia follows in the footsteps of Massachusetts, which already did the same in 1978. In addition, in the coming months could do something like New York.

This law is expected to come into force on July 1 and as reported by the Wall Street Journal, this rule will not affect Costco stores, which require membership, or hotels or car rental companies that require a credit card or debit as a guarantee for future charges. In addition, those businesses that break the law will be fined $ 2,000.

Amazon requested an exemption to open a store in Philadelphia. However, the authorities informed him that he could operate those stores that they require a membership to buy there, as with Costco. However, Amazon alleged that a Prime membership is not required to buy at Amazon Go stores, so it seems unlikely that it will get rid of the rule.

Although there are officials of the Chamber of Commerce who criticize the rule because it will delay the city of Philadelphia to adapt to new technologies and to modernize like the rest of the country's cities, there are also supporters who praise the measure. In particular, they rely on the fact that they will not discriminate against those citizens who do not have a credit card or mobile payment applications.


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