The e-commerce behemoth is reportedly chatting with big banks about creating a "checking-account-like product" for its customers.
As the Wall Street Journal reports, Jeff is now in talks with JPMorgan to create a checking account for Amazon customers. Whatever its final form, the initiative wouldn't involve Amazon becoming a bank, the.
Talks have also taken place with United States credit card lender Capital One, the Wall Street Journal said. Amazon also has an Amazon.com Store card from Synchrony, the financial services company spun off by General Electric in 2015.
Amazon already teams up with banks to offer different credit cards. Consultants McKinsey previous year described Amazon and other digital platform companies as a bigger threat to banks than fintech firms. The move could reduce or eliminate Amazon's current need to pay banking partners and payment processors to handle transactions. It's unclear how fully-featured the checkings accounts would be - is this just another PayPal service, or a full checking account with access to bill payments and the worldwide banking system? "Ultimately, Amazon is in fifth gear, trying to double down on the consumer and the finance vertical looks like the next step (through partnerships) of adding to the Amazon flywheel".
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.
It turns out that healthcare may not be the only new sector that Amazon is venturing into.
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