- The e-commerce giant is in talks with banks including JPMorgan to launch a “checking account-like product,” the Wall Street Journal reported Monday.
- Any new product would be geared toward younger customers without bank accounts or credit cards.
While the talks still aren’t aimed at Amazon becoming a bonafide bank, they are geared towards offering a financial product to younger customers who may not have access to a bank account, the paper reported citing people familiar with the matter. JPMorgan and CapitalOne are among the possible participants, the paper said.
Personal finance would be just the latest area Amazon is attempting to gobble up the competition. It’s $13.7 billion buyout of Whole Foods in 2017 sent shockwaves through the grocery industry, and its announcement of a new shipping program wiped away billions of market value from competing UPS and FedEx.
Banks are also eager to partner with startup financial products, which often offer all the services of a bank without a traditional account. A large consortium of consumer banks recently banded together on money-transfer app Zelle in a move to fight off the likes of Venmo.
Amazon already offers a rewards credit card through Visa.
Shares of Amazon were up 0.2% ahead of the opening bell; JPMorgan was down 0.5%