Amazon.com, Inc. (NASDAQ:AMZN) and a number of other online grocery stores will begin accepting food stamps.
The e-commerce retailer announced that it will allow customers to buy products with stamps via the Supplemental Nutrition Assistance Program (SNAP), according to U.S. Department of Agriculture secretary Tom Vilsack.
Participants of the program living in urban neighborhoods and rural communities where there is no easy access to high-quality produce and other grocery goods can now use their food stamps on Amazon and other online retailers to get their food.
The program will be tested at first in seven states including Maryland, New Jersey, New York, Pennsylvania, Washington, Iowa, and Oregon. The other companies that are taking part in it include FreshDirect, Safeway Inc (NYSE:SWY), ShopRite Holdings Ltd, Hy-Vee Inc, Hart’s Local Grocers and Dash’s Market.
“Amazon is excited to participate in the USDA SNAP online purchasing pilot,” the company said in a statement. “We are committed to making food accessible through online grocery shopping, offering all customers the lowest prices possible.”
The move will help those in need put their food stamps to good use instead of having to buy food choices that are not that healthy because that is all that there is available to them.
The USDA hopes to eventually add more companies to the program and one day make it a nationwide phenomenom.
AMZN stock popped 2.3% Friday.
