The technology being employed is computer vision and depth geometry to scan the hands of the shoppers.
Amazony, facing backlash from critics who say cashless stores discriminate against the poor, confirmed last month that it was working on a way to accept paper bill and coins
Reportedly, Amazon Inc is already evaluating some top US airports for new locations.
The technology currently functions well in small store formats but is harder to use in bigger spaces.
Amazon Go stores have no cashiers and allow shoppers to buy things using a smartphone app.
Microsoft’s technology aims to help retailers keep pace with Amazon Go, a highly automated store that opened to the public in Seattle in January.
Amazon opens its checkout-free store 'Amazon Go' on 22 January in Seattle; no more waiting in queues to pay for goods
The convenience-style store opened to Amazon employees on 5 December, 2016 in a test phase.
The surge in e-commerce has required the rapid build-out of a vast network of warehouses and delivery systems that include both robots and human workers.
The deal represents a dramatic turn in strategy for Amazon, which has offered food delivery through its Fresh service for a decade but has not made a major dent in the $700 billion grocery market
Walmart's aggressive efforts to take on Amazon seem to be gaining momentum even as other retailers and department store chains struggle.
Amazon has quietly transformed into a full blown titan that is taking on the best in the tech industry
Amazon is the fourth largest tech company, behind Foxconn, Samsung and Apple. Amazon is also the largest Internet company.
Amazon has opened a brick-and-mortar grocery store in Seattle without lines or checkout counters, kicking off new competition with supermarket chains.