Amazon Says It Won’t Take Bitcoin

Amazon stockBy Szk7788 (Own work) [CC BY-SA 3.0 or GFDL], via Wikimedia Commons

Amazon.com, Inc. (NASDAQ:AMZN) has now officially said it has no plans to accept bitcoin. The position is the opposite of Overstock.com, Inc. (NASDAQ:OSTK), which began accepting it earlier this year. However, Overstock and the other online retailers are much smaller than Amazon.com, Inc. (NASDAQ:AMZN) and eBay Inc (NASDAQ:EBAY), which only offers limited sales using bitcoin.

Amazon considered bitcoin

Tom Taylor, who heads up Amazon.com, Inc. (NASDAQ:AMZN)’s payments division, spoke with Re/code, telling the site that they have considered taking bitcoin as payment. However, the online retailer said they haven’t heard from customers that “it’s right for them.”

He reportedly wouldn’t say that there aren’t advantages to having a global currency. However, he said that sellers on their site “have more urgent needs,” like handling exchange rates for foreign currency. He said that would instead focus on issues like those.

Will Amazon make its own credit card?

Many believe Amazon.com, Inc. (NASDAQ:AMZN) will build its own payments service which would compete against Mastercard Inc (NYSE:MA), Visa Inc (NYSE:V) and American Express Company (NYSE:AXP). Taylor reportedly told Re/code that they may create their own payments system, but only if theyfelt like they “could do a better job than Amex and Visa” and only if they “feel like it helps the customer experience.”

Re/code says sources within the industry remain sure that Amazon.com, Inc. (NASDAQ:AMZN) will build its own payments services platform, saying it’s a matter of “when” rather than “if.” However, Taylor didn’t give any more details on what they might be thinking on the matter.

Bitcoin’s bumpy ride continues

Over the last year or so, bitcoin has certainly had its ups and downs. The value of the digital currency has been changing rapidly—by the day or even hour in some cases. Regulators and tax officials have been trying to determine the best way to use the currency and make the most of it. However, since well-known Japanese exchange Mt. Gox declared bankruptcy, some have been questioning whether bitcoin can truly become the currency of the future. Also China’s recent decision to crack down on exchanges sent shock waves through the industry.



About the Author

Michelle Jones
Michelle Jones was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Michelle has been with ValueWalk since 2012 and is now our editor-in-chief. Email her at Mjones@valuewalk.com.