Amazon talks to banks over checking account

  • Amazon talks to banks over checking account

Amazon talks to banks over checking account

Either way, it's yet more proof that Amazon is examining every service that costs it money and wondering if it can do better itself.

The discussions are early enough, though, that it's still unclear whether an Amazon-branded checking account would ever launch, the report said. 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. Offering checking accounts to customers could lower payment processing fees for Amazon, as well as give the company granular insight into customer's spending habits, in addition to making it even harder for customers to even contemplate switching away from Amazon. Free for 14 days - no credit card required! By handling the transaction themselves, Amazon can avoid paying fees to Visa V and Mastercard MA.

"It seems like another example of fintech collaboration with existing banks rather than a true disruption", Guy Moszkowski, an analyst at Autonomous Research LLP, said in an email. JPMorgan shares were down less than 1 per cent to US$112.39.

While U.S. policy makers have for years been skeptical of letting big companies move into banking services, that may be changing. Doing so would expand Amazon's portfolio beyond its core e-commerce platform - which already includes grocery stores and most recently the acquisition of Ring. Among the companies Amazon officials are speaking with is JP Morgan Chase & Co., according to the newspaper. A representative for JPMorgan declined to comment.