Amazon Offers Discount to Low-Income Customers

Amazon (Seattle) announced that it will offer reduced prices for its Prime membership subscriptions to customers who receive government assistance, which accounts for about 18 percent of U.S. households.

Instead of paying the regular rate of $10.99, customers with a state-issued debit card for government benefits can receive those same services for $5.99 a month. Customers who receive the reduced rate will be able to take advantage of the service’s free two-day shipping and will have access to streaming videos and music.

Amazon is also participating in a U.S. Department of Agriculture program to test using food stamps online, though the new membership discount does not apply to the company’s grocery delivery service, AmazonFresh, which costs $14.99 per month.

According to CNN Money, the company is hoping to attract more low-income shoppers and allows it to compete more directly with Walmart (Bentonville, Ark.).