Pay as You Go: No Lines, No Checkout

Amazon Go’s debut on December 5th, 2016 has shaken the retail, payment, and technology world. Amazon Go is a new kind of store featuring the world’s most advanced shopping technology. No lines, no checkout — just grab and go! Convergence of IOT sensing, data analysis, and seamless payment is a disruptive innovation which will redifine brick and mortar experiences. Not only in grocery store, but also in shopping mall, movie theater, restaurant, and so on.

Shopping creates an enjoyable moment while waiting ruins the entire experience. American spend roughly 37 Billion hours each year waiting in line. [1] Waiting creates stress, boredness, and meaningless lifetime. By eliminating wasted time and negative feeling while waiting, store will enable its customers to spend more time shopping around, which implies potential revenue, and increase the customer experiences and satisfaction dramatically. Therefore, Amazon Go with its advanced shopping technology will create new value and stand out from the competitive market.

Payment can be as easy as breathing the air. The less steps, the more money people will spend. To illustrate, people spend 12–18% more when using credit cards instead of cash.[2] Using cash, we feel we are paying with a cost, and we tend to care about how much we have left. As we swift to credit card or mobile pay, the simplified payment process requires only a signature or a tap without a second thought. Amazon’s One-Click Ordering is a successful example showing how a simplified shopping flow boosts the shopping frequency. Shopping and payment experiences are tightly bound together. Amazon Go is going to disrupt the world extremely with pay as you go, no lines and no checkout at all. You will not even notice about payment.

Amazon Go concept can be applied to every kind of store. Shopping domain is the great strength of Amazon. Grocery store is just a start point where people frequently go shopping. Soon, Amazon Go will enter shopping mall, movie theater, restaurant, transportation, and compete with all the payment method such as Apple Pay, PayPal and Square. For example, you go to a cafeteria for lunch. You grab your meal and go! You get on a bus and you are good to go!

Pay as You Go will the biggest story in 2017. The technology is ready. It is just the matter of building the ecosystem and deploying to the stores. We are seeing the exponential innovation shaping our future lifestyle. Amazon Go is taking the lead to make this happen much faster than people expected. By the end of 2017, we will see Pay as You Go: No Lines, No Checkout.

[1] Why Waiting Is Torture (The New York Times)

[2] Research conducted by Dun & Bradstreet