It seems that healthcare isn’t the only area Amazon is looking to get itself into. According to The Wall Street Journal, Amazon is currently talking with J.P. Morgan to build a product similar to a checking account that would be offered to the company’s customers.
Amazon would aim this product at younger shopper and people who don’t have bank accounts. It’s important to note that Amazon would not act as a bank here, rather it would work with a partner with existing financial firms. At this time, it appears that talks and progress of this project are in very early stages, so it’s not clear at this time what form this project may end up taking. For example, will it be checking accounts and ATM access will work.
If Amazon does go this route and launches its version of a checking account, it would cut the fees it now pays to banks and payment processors. For customers that are already deep into the company’s ecosystem, it will provide them with another incentive to keep using the company’s services and stay locked in.
As Amazon continues to grow, it makes sense the company is going this direction and making these moves for the financial sector. The question now becomes on how the partnerships will work for both sides, especially since a checking account is more complicated than a simple company-branded credit card.