Amazon UK will lose more than 1.4 billion pounds by disabling Visa credit cards

Citing high transaction fees, Amazon announced its ban on Visa credit cards on November 17. Prior to this , there were reports that Visa planned to increase the fees charged for purchases in the UK in Europe , with the credit card interchange fee rate jumping to 1.5% after Brexit , which is five times the previous 0.3 % .

Amazon said that from January 2022 , it will no longer accept Visa credit card payments from British users . This move may cause the platform to suffer nearly 1.4 billion pounds in losses from British shoppers .

A recent survey of 2,000 Britons found that 13% of Amazon's 48 million UK customers , equivalent to more than 6 million people , intend to reduce or even completely stop shopping on the Amazon platform.

Considering that Amazon 's total revenue in the UK was 20.63 billion pounds in 2020 , the loss of these British customers may cause Amazon to lose about 1.356 billion pounds in revenue . According to relevant data, Visa credit card transactions contributed 1.4 billion pounds to Amazon 's net sales in the region last year .

A third of respondents to the survey were disappointed that Amazon would no longer accept Visa credit card payments from next year , and more than a fifth said they expected Amazon's UK transaction volume to fall by up to 50% after the policy came into effect .

In response, a spokesperson for research firm OnePoll said that Amazon's ban on Visa credit card services has obviously angered the British , and they obviously don't like having to change their payment methods because of a dispute between the two giants .

Users who are dissatisfied with Amazon's move have actually discovered some clues. Some industry insiders believe that Amazon's move is to drive users to use its own credit cards, and Visa's competitor MasterCard will also benefit from this dispute.

The survey also found that nearly 90% of respondents shopped on Amazon , of which 27% preferred to pay with Visa credit cards , 34 % used Mastercard credit cards, and 27% only had a debit account.

Nearly one-fifth of the respondents said they shop online multiple times a week , 14% of whom said they mostly shop on Amazon , and 65% mentioned that they have become Amazon Prime members for faster logistics experience .

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