Amazon might adopt the central bank of Mexico's upcoming mobile payment system, according to Reuters. The e-commerce giant reportedly approached Banco de México (Banxico) and offered to support CoDi, a government-backed mobile payment technology that would allow users to pay for online and in-person purchases through QR codes. Phone-based payment systems have become popular in emerging markets like India over the past few years and has the potential to take off in Mexico where half the population doesn't have a bank account.
The Mexican government created CoDi to boost its economy and encourage the use of electronic transfers, but some financial experts raised concerns about ease of use. To be able to pay through the platform, both parties' devices have to connect to Banxico to encrypt the transfer and request decryption keys. While online giants like Amazon will likely have no issue incorporating the system, small businesses -- who'll be able to use the platform free of charge -- accepting payments in-store might suffer from a laggy user experience.
Amazon's support could drum up interest in CoDi and encourage people to use it despite those concerns. Mexico's central bank is slated to launch a pilot trial for the payment system later this month. But since Amazon has yet to confirm the news, it's unclear if the option will be available on its website in the near future.