Amazon wants to start offering bank accounts

Marcus Newton
March 6, 2018

The plan: The Wall Street Journal is reporting that the tech giant is building a product similar to a checking account, meant to attract people who don't now have bank accounts.

The report says Amazon is already talking with banks such as JP Morgan Chase to launch the accounts which would be aimed at younger customers.

The concept is still in its early stages, and it's unclear how exactly it would function, the Journal reported.

By offering its own checking-account product - or partnering with a bank to offer one - Amazon could minimize transaction fees on its platform. They just want Amazon customers to be able to pay for shit out of an Amazon checking account so Jeff doesn't have to pay processing fees to banks.

Capital One Financial is another firm that has pitched Amazon on a possible checking account product, according the Journal's sources.

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One problem with, Inc.'s plans are restrictions it may face from its rivals and legislators. In addition, almost 50 percent would use a savings account if Amazon were to offer one to its clients.

Amazon is now growing its presence in traditional, brick-and-mortar retail with its own stores and last year's acquisition of Whole Foods. Emily Glazer, banking reporter at the WSJ, explains her outlook for Amazon's ability to enter this sector.

Amazon already offers a Prime rewards credit card from JPMorgan Chase that is issued by Visa.

[Amazon's] more-than $700 billion market value eclipses the combined value of JPMorgan and Bank of America Corp, the two biggest US banks.

Other reports by MaliBehiribAe

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