Amazon.com (AMZN) said Tuesday that it will start offering discounts to members of its Prime subscription service who receive U.S. government aid. 

The initiative directly takes aim at Amazon rival Walmart (WMT) , the biggest recipient of the Supplemental Nutrition Assistance Program (SNAP), with at least one in five Walmart consumers paying via food stamps. Dollar stores such as Dollar General (DG) and Dollar Tree (DLTR) , which also accept food stamps, could also be hurt by Amazon's new approach. 

Seattle-based Amazon said it would offer the $10.99 per month Prime service for $5.99 per month to those receiving government assistance including welfare and food stamps.

Shares of Amazon were rising slightly on Tuesday. 

(Amazon.com is held in the Growth Seeker portfolio. See all of the holdings with a free trial ).

Read More Trending Articles:

More from Stocks

Podcast: What TheStreet's Interns Learned From Jim Cramer and Action Alerts PLUS

Podcast: What TheStreet's Interns Learned From Jim Cramer and Action Alerts PLUS

Bank of America, Tariffs and the Goldman Sachs CEO Change: Jim Cramer Rewind

Bank of America, Tariffs and the Goldman Sachs CEO Change: Jim Cramer Rewind

Goldman Sachs Really Doesn't Like Apple's Stock

Goldman Sachs Really Doesn't Like Apple's Stock

Lee Munson on the Market, Trade and the Possibility of a Recession

Lee Munson on the Market, Trade and the Possibility of a Recession

Buy These 3 Killer Tech Stocks, Says Wall Street's #1 Analyst

Buy These 3 Killer Tech Stocks, Says Wall Street's #1 Analyst