Amazon (NASDAQ:AMZN) unveiled its contactless biometric technology, Amazon One, in 2020. The company’s palm recognition service has multiple uses, with payments and identification being the most prominent ones. The early adoption trend for Amazon One is encouraging, signaling that AMZN could leverage the technology to conquer the payments market and emerge as a leading payment solutions provider.
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The technology company said last month that Amazon One has already been used more than three million times, marking a new milestone. Moreover, the company added that by the end of 2023, all of Whole Foods Market’s 500+ locations will offer Amazon One for payment and Prime membership benefits.
In simple terms, this implies that customers can use their palms to pay at Whole Foods Market locations and will no longer require a wallet or other means of payment. Currently, Amazon One is available in 200 Whole Foods Market locations.
The further expansion shows the growing adoption of AMZN’s palm recognition service. Additionally, it might assist Amazon in becoming a major provider of payment services, which would improve its ecosystem. However, the payments solutions segment is highly competitive, and the company could face stiff competition from Apple (NASDAQ:AAPL), PayPal (NASDAQ:PYPL), and Block (NYSE:SQ).
While AMZN focuses on emerging as a payment solutions provider, let’s check what the Street recommends for the stock.
Is Amazon Stock Expected to Rise?
As Amazon is strengthening its payment offerings, Wall Street analysts expect the stock to rise, given the increase in the e-commerce business, stabilization in the cloud division, and momentum in the advertising segment. In addition, cost reduction initiatives are a positive for AMZN.
With 40 out of 41 analysts recommending a Buy on Amazon stock, it sports a Strong Buy consensus rating. Analysts’ average price target of $174.13 implies 25.81% upside potential from current levels.
