Amazon is working with Mexico's central bank on a smartphone payment system that uses QR codes

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Amazon is working with Mexico's central bank on a smartphone payment system that uses QR codes
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Mexico's central bank is in talks with Amazon.com Inc to launch a new government-backed mobile payment system that would allow consumers to pay for online purchases using QR codes, the bank's head of payments said.

The system would let consumer use QR codes to pay for online purchases.

The payment system, known as CoDi, is being built by central bank Banco de México, known as Banxico. CoDi will allow customers to make payments online and in person through smartphones free of charge using QR codes. It aims to bring more people into the formal financial sector.Amazon and Argentine rival MercadoLibre have approached the bank about adopting the system, Jaime Cortina, Banxico's director of operations and payments, told Reuters.

Phone-based banking is popular in other emerging markets such as China, India and Kenya, and has been driven by user-friendly, affordable apps from private companies.

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