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

Dow Gets Swept Into Nasty Reversal Even as Nasdaq Posts New Record

Dow Gets Swept Into Nasty Reversal Even as Nasdaq Posts New Record

REPLAY: Jim Cramer on Fed Rate Hikes, Oil Prices and Starbucks Worries

REPLAY: Jim Cramer on Fed Rate Hikes, Oil Prices and Starbucks Worries

What Will GM Do With Cruise -- and Is Its Stock Worth $55?

What Will GM Do With Cruise -- and Is Its Stock Worth $55?

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists

This Should Be Your Retirement Savings Plan When the Stock Market Crashes

This Should Be Your Retirement Savings Plan When the Stock Market Crashes