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Amazon.com Inc. is in talks with JPMorgan Chase & Co. and Capital One Financial Corp. about offering the tech giant’s customers a product similar to a checking account, the Wall Street Journal reported.


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21 comments

a year ago

Amazon can get young people and people without bank accounts into their ecosystem so that they buy more stuff from Amazon. They can get a better deal from their bank partner to pay less fees when people buy stuff from Amazon. This isn’t about them wanting to become a bank, this is about selling more stuff on Amazon.

a year ago

#ShutUpAndTakeMyMoney I will switch for free prime in less than a heartbeat.

a year ago

Seems free prime isn't just my thinking either https://thefinancialbrand.com/71037/amazon-checking-banking-alexa-chase/

a year ago

The thing is, this is still just a wrapper on an incumbent's bank account. That's probably going to constrain the UX - at least in the short term - & long term, it'll limit how far they can take the app.

Having said that, bolting on incentives like Prime & their marketing reach is obviously going to be powerful so we'll wait & see.

But I think it's too early to call.

a year ago

Alex - I look forward to serving you a massive bowl of "I told you so".

a year ago

Haha I'm sure 😉 if Amazon gives us better banking than the challengers then I'll happily eat it too 😄

a year ago

Aaah - I didn't necessarily say it would be better (at least initially) - just have mass adoption that the challengers won't. The it will be followed by more bundled products from competitors - free Netflix, Spotify etc.

a year ago

In that case, the challengers will still eventually end up with the greater market share 😛

a year ago

So naive :)

a year ago

"A billion users" 👉🌕

😂

a year ago

WeChat had a billion active users in a month over Chinese New Year for the first time - now that's a story!

a year ago

So it can be done then 😛

a year ago

Just LOL if you think any regulator in the world will allow a bank with a billion customers. Unconscionable concentration of risk.

a year ago

Who knows what the endgame is with Amazon. Last year Amazon Cash was widely accepted as just a move to get unbanked users in developing nations to shop with them. Operationally they'd not have an issue with delivering a banking service I'm sure. I agree it's not full on Amazon bank time....yet! Capital One are a big AWS customer, so don't think it's being seen as hostile for the moment.

a year ago

You guys have been calling it on the podcast for months!

a year ago

You say something for long enough and the probability of it becoming true approaches 1.

a year ago

JP Morgan only do corporate outside of US - are we likely to see their first moves in the US then? How does this align to their global vs local strategies?

a year ago

Hmm I thought it sounded like JP Morgan are effectively white labelling their consumer accounts here, I'm not seeing the link to corporate, am I missing something?

a year ago

Yes - @Mpras was basically saying - This is US only just now - which is my take on it too.

a year ago

Ah, completely misread that 🤦‍♂️ thanks.

I suppose that makes it even more of a proof-of-concept then, given how much work it will take to replicate the same partnership outside the US. World domination could be a while away yet..

2 days ago

Nice work