• Amazon and Walmart are now accepting Supplemental Nutritional Assistance Program benefits for groceries that are purchased online.
  • Amazon also says it’s waiving Prime membership fees for families that qualify for SNAP benefits.
  • It’s estimated that roughly 18% of all SNAP benefits are spent at Walmart, or roughly $13 billion annually.

Amazon and Walmart are now accepting Supplemental Nutritional Assistance Program benefits for groceries that are purchased online as part of a pilot program in New York, the companies said Thursday.

Amazon also said it would waive Prime membership fees for families that qualify for SNAP benefits, as part of the program.

SNAP benefits, also known as food stamps, help low-income families pay for food. The federally funded program loads monthly benefits onto cards, which can be used like debit cards at grocery stores.

By accepting SNAP benefits online, Amazon has the opportunity to access a new set of customers and could eat into Walmart’s share of food-stamp spending.

It’s estimated that roughly 18% of all SNAP benefits, or roughly $13 billion annually, are spent at Walmart.

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