Amazon’s next move? Branded checking accounts: report
Amazon is at it again.
The e-commerce giant is reportedly in talks with some of Wall Street’s biggest banks, including JPMorgan Chase, in an effort to create a “checking-account-like” product for its customers, according to The Wall Street Journal.
Sources familiar with the situation told the outlet that while the discussions are still in its early stages, the final product could include an Amazon-branded type of checking account that would appeal to younger customers and those without bank accounts.
Sources, however, stressed to the Journal that the move isn’t an attempt for the retailer to become a bank. The company does offer an Amazon-branded Visa card that, among other benefits, allows customers to save money on purchases at both Whole Foods and on Amazon.com, with a 5% cash back on Prime purchases. A new checking account service would essentially entrench the Seattle-based company even further into the lives of its customers.
What’s more, the idea of a new checking account would be welcomed by nearly half of Amazon’s customers, according to a report published last week. LendEDU, an online marketplace for student loan refinancing, found roughly 45% of respondents that were surveyed were open to the idea of using Amazon as their primary banking account, while 49.6% would use a savings account created by the company.
Additionally, the potential partnership with JPMorgan Chase would be the second major agreement with the online retailer this year.
In late January, Amazon’s CEO Jeff Bezos, along with JPMorgan Chase CEO Jamie Dimon and Berkshire Hathaway’s Warren Buffett, teamed up to announced a joint effort to reduce health care costs for their more than 1.1 million employees.
Neither Amazon or JP Morgan Chase responded to FOX Business’ request for comment on the matter.