Amazon mulling checking-account like product with big banks
- Author: Rita Burton Mar 06, 2018,
Mar 06, 2018, 1:37
Amazon is reportedly considering launching a checking account-like product with some big banks like JP Morgan Chase & Co. It is reported that the checking accounts seek to appeal to a younger audience, perhaps like the demographic most closely affiliated with Amazon's digital-first identity. They said the plan is in too early a stage to determine if it will come to fruition.
But in talking to JPMorgan and Capital One, Amazon has shown that it does not intend to entirely disrupt the existing structure of the financial business.
Earlier this year, Amazon and JPMorgan teamed up with Warren Buffett's Berkshire Hathaway to tackle rising healthcare costs for their U.S. employees. As Amazon continues to grow, it made sense that the company would turn its eyes towards the lucrative finance sector.
If Amazon were to launch its version of a checking account, it would cut the fees it now pays to banks and payment processors. So Jeff wants to reach out to the unbanked and make them banked via an Amazon checking account.More news: Cigarettes vapor tested positive for Lead and Arsenic in new study
Now, Amazon is looking to move further into financial services.
The company is trying to bring Amazon Pay to brick-and-mortar stores, the WSJ report said, adding that it is likely to begin with Whole Foods, which Amazon bought a year ago.
Before you sell all your bank stocks. Amazon also offers a debit-card type service called Amazon Cash, which enables shopping on Amazon without a credit or debit card, and deposit style service called Prime Reload.