Amazon looks to offer its own version of a checking account
Mar 06 2018
Amazon is in talks with JP Morgan and Capital One to offer checking account-esque services to customers, according to the WSJ. According to a Wall Street Journalreport, the online retailer is considering launching their own branded checking account aimed at younger individuals and "those without a bank account".
The Wall Street Journal said any potential collaboration is "in its early stages and may not come to fruition".
By offering its own checking-account product - or partnering with a bank to offer one - Amazon could minimize transaction fees on its platform.
It wouldn't be Amazon' s first foray into the financial sphere.
Amazon, of course, has millions of customers, access to cheap capital, and tons of data, making it a potentially fearsome competitor to the banking industry.
A survey conducted by LendEDU found that about 45 percent of Amazon customers would be open to the concept of Amazon acting as their primary banking account, CNBC said.
It turns out that healthcare may not be the only new sector that Amazon is venturing into. The move would also help the company avoid some of the fees it now pays financial firms and learn more about people's income and spending trends.
With Amazon's host of customers and impressive market value, some have wondered whether the e-commerce giant would eventually seek to disrupt the banking system.
Amazon also recently launched Prime Reload, which rewards users with a 2% bonus is they use their debit card to transfer money from a bank account to an Amazon balance. Amazon also has an Amazon.com Store card from Synchrony, the financial services company spun off by General Electric in 2015.
[Amazon's] more-than $700 billion market value eclipses the combined value of JPMorgan and Bank of America Corp, the two biggest US banks.