The latest Amazon venture in its quest to infiltrate every industry, has recently delved further into the world of Fintech. There has been reports of Amazon currently in talks with banks such as Capital One and JP Morgan Chase about implementing hybrid checking accounts for its customers. If this comes to fruition then many persons, especially millennials without bank accounts, will be the main target.
Many may ask; will Amazon open a bank? Well, the answer to that is no. They will be in partnership with a bank on a product to benefit its customers while also benefiting the company. This move would see the company benefitting from not having to pay high fees to financial firms and allow the company to better understand the spending habits of its customers.
This may be a great move as more and more Gen Xers and millennials are tech savvy than ever showing a preference to flexible options and lower fees. Investors should note that this is not Amazon’s first time trying to enter into the financial services. Last year they launched Amazon Cash, a service similar to PayPal where customers could add funds to their account in order to buy for goods online. Amazon cash offers a Prime Reload Visa card from JP Morgan Chase. Additionally, Amazon Pay, another financial service offering from Amazon, allows customers to shop and pay for goods on other sites without re entering their credit card information.
Amazon is still in the early planning stages and there is skepticism from analysts as to the likelihood of this idea coming to fruition. Nonetheless, there is no denying that with Amazon anything is possible.
We are waiting to see how the company perfects this idea and the results of the discussions with banks. If you still have not purchased Amazon, now may be a great time to do so.
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