With an EBT card, you can now get Amazon Prime for less

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Amazon

Amazon is keeping up its effort to bring more lower-income customers to its Prime membership program.

The e-retailer on Tuesday said it cut the price for a Prime subscription to $5.99 a month for people with an EBT card. These cards are used to disburse funds for food stamps and other government-assistance programs. At an annual rate, that would cost $71.88, a 27 percent reduction from the typical $99 Prime fee.

With the company gaining just about every middle- and high-income Prime customer it can, the only big way Amazon can grow Prime in the US is to bring on more lower-income households. Once customers join Prime, they tend to spend twice as much on Amazon than non-Prime customers. Nearly 75 percent of households making over $112,000 annually joined Prime, while less than 50 percent of households making $21,000 to $41,000 have, according to a study last year from Piper Jaffray.

Amazon has been trying to find ways to make its Prime fee a little easier to pay so it can convince more customers to join. The company last year started letting people pay for Prime for $10.99 a month — though the total cost at the end of the year was actually higher than $99.

Amazon in April also introduced a new service called Amazon Cash, which lets people without credit or debit cards instantly add money to their Amazon accounts when visiting retail locations, including CVS and Sheetz.

This new strategy doubles as a way for Amazon to fight against Walmart. The rival retailer has catered to lower-income customers for years and has been aggressively pushing into e-commerce, Amazon’s home turf.

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