Friday, 20 April, 2018

Amazon in talks with JPMorgan on checking accounts, says WSJ

Reuters Reuters
Nellie Chapman | 05 March, 2018, 22:21

Instead, it would likely partner with a bank on the new product, as it does with credit cards.

Citing people familiar with the matter, The Wall Street Journal reported today that Amazon is in early talks with major financial institutions and that there's still a possibility that they might fall through.

As enticing as an Amazon-branded checking account may sound to some, there's no guarantee the retailer will follow through with their current plans.

Now, Amazon is looking to move further into financial services.

The Wall Street Journal reported Monday morning that Amazon is in talks with several banks to launch a "checking account-like product". Their survey found that 52 percent of Prime customers would be open to a primary bank account from Amazon, compared with 44 percent of consumers overall. Amazon Pay allows consumers to pay for products on third party sites without reloading their credit card information.

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.

With a direct view into how people are spending their money, Amazon may finally own the full online shopping experience: The company would have deep insights into your income and expenses, offer the best deals on products you regularly purchase, avoid transaction fees with its new checking account, and, finally, deliver your purchase to your doorstep. For one, the company offers Amazon Cash, a platform that lets users add cash to an Amazon wallet by displaying a barcode in person.

In January, Amazon.com, Berkshire Hathaway Inc and JPMorgan said they will form a company to cut health costs for hundreds of thousands of their employees.

Amazon rose 0.3% in the stock market today.