(AMZN - Get Report) 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 - Get Report) , 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 - Get Report) and Dollar Tree (DLTR - Get Report) , 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. 

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