In what seems like a flurry of news to start the year, we’re getting details this morning on a possible move by Amazon to get into the banking business. A new Wall Street Journal report claims that the online shopping powerhouse is in early discussions with JP Morgan Chase to introduce a checking account-style product. On the heels of news about Amazon’s health insurance aspirations, it’s hardly a surprise that this type of project is underway.
Early reports say that Amazon recently kicked up conversations with a variety of America’s largest financial institutions. JP Morgan Chase is specifically mentioned as a potential partner on some sort of checking account offering. The Wall Street Journal does state, however, that any potential move by Amazon in this direction would not be positioned as a standalone bank type of situation. A pairing with one of America’s more established players would be a cornerstone of this project.
It’s not a surprise that Amazon is making a potential push into the world of finances. This is a logical next step for a brand that is seemingly pursuing every major area of our nation’s economy. Recent moves to acquire Whole Foods and expand its Go autonomous grocery store locations show Amazon’s aspirations on a larger scale.
Going beyond today’s news and forecasting a future where Amazon offers special perks to checking account holders isn’t difficult to imagine. It already has a Prime credit card in partnership with Chase (surprise!) that offers a variety of perks for members. That includes 5% cash back at both Amazon and Whole Foods.
Imagining a similar offering in the form of a checking account could yield Amazon shoppers even greater savings. Bringing on cash in the form of a checking account offering is like instant capital for Amazon, which could be used in a variety of ways to pursue other areas of interest. In turn, it could afford to deliver better promotions and deeper savings than we’re already seeing from its credit card offers.
Of course, in 2018, data is king. Today’s report that Amazon may be entering the world of checking accounts will inherently offer great access to consumers’ shopping habits. What’s clear is that there is a variety of reasons for Amazon to pursue this area of interest. What’s yet to be seen is consumers willingness to take cash from other accounts and hand it over to Amazon before making any purchases.
In the meantime, be sure to check out Amazon’s Prime Rewards Visa. On top of 5% back at Amazon and Whole Foods, you get 2% bonuses at restaurants, gas stations and more. Amazon also saves some of its best offers of the year for card-carrying members.
What are your feelings about Amazon pursuing a checking account offering? Let us know down in the comments below.
Source: The Wall Street Journal