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.
🔗 CNBC | WSJ | Business Insider | FinExtra | Fortune | American Banker | AltFi News
Share:
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.
#ShutUpAndTakeMyMoney I will switch for free prime in less than a heartbeat.
Seems free prime isn't just my thinking either https://thefinancialbrand.com/71037/amazon-checking-banking-alexa-chase/
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.
Alex - I look forward to serving you a massive bowl of "I told you so".
Haha I'm sure 😉 if Amazon gives us better banking than the challengers then I'll happily eat it too 😄
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.
In that case, the challengers will still eventually end up with the greater market share 😛
So naive :)
"A billion users" 👉🌕
😂
WeChat had a billion active users in a month over Chinese New Year for the first time - now that's a story!
So it can be done then 😛
Just LOL if you think any regulator in the world will allow a bank with a billion customers. Unconscionable concentration of risk.
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.
You guys have been calling it on the podcast for months!
You say something for long enough and the probability of it becoming true approaches 1.
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?
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?
Yes - @Mpras was basically saying - This is US only just now - which is my take on it too.
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..
Nice work