According to various sources, Amazon is considering partnering with various banks in an effort to offer a “checking-account-like” product for consumers. It has been reported by The Wall Street Journal that Amazon is in early discussions with organizations, including J.P. Morgan Chase, Capital One and others, to launch Amazon-branded checking accounts targeted at younger customers and under served segments.
The WSJ said that the talks were in the early stages, and that nothing may actually come from them. The story also didn’t discuss whether Amazon would offer services beyond checking accounts. Either way, it seems clear that Amazon would like to expand it’s reach beyond retailing, adding value to Prime relationships, especially in the parts of a consumer’s life where there is friction and where the experience is less than superior.
A recent example of extending into inefficient industries is when Amazon announced that it was entering the health care insurance business in partnership with J.P. Morgan Chase and Warren Buffett’s Berkshire Hathaway. Amazon already offers a Prime Rewards credit card from J.P. Morgan Chase that is issued by Visa to make purchasing on Amazon easy and less expensive. In other words, financial partnerships are not new for Amazon.
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