Like all big tech companies, Amazon already records tons of data on customers from its e-commerce site, Alexa voice assistant, Kindle catalogs, Audible audiobooks, video streaming, music app, home-security cameras, and fitness trackers. Payments is no exception. But mostly, this data digging happens in the background.
However, with the Visa credit card ban announcement in November, Amazon created a unique controlled experiment of sorts.
Amazon was meant to stop accepting Visa credit cards in the UK tomorrow (Jan. 19), before making a U-turn yesterday (Jan. 17). Since November, customers have been responding, and with the dispute between Amazon and Visa set to continue, it’s become a test of loyalty.
“Think about all that data Amazon just captured when it announced the Visa (ban),” says Ben Goodall, CEO of the online payments firm Banked.com. “Who changed to a MasterCard/Amex? Who canceled their Prime membership? Who applied for an Amazon card? Who did nothing? Who complained? All the sort of information you would want if you are building the super checkout for the future.”
Amazon’s festive cheer
In an opportune move, Amazon announced the upcoming ban ahead of the Black Friday and Christmas shopping period—”a time when there’s an increase in spending,” Goodall points out—but kept the Visa payment option open throughout.