Amazon Bank Account Threatens Incumbents

Amazon Bank Account Threatens Incumbents

Amazon is reportedly looking to cut out the credit card companies.

According to Bloomberg, Amazon is looking for a banking partner to allow purchases on its eCommerce platform without paying credit card companies their cut.

Amazon already dipped its toes in the payments space with two products: Prime Reload and a Chase rewards card.

With Prime Reload, consumers use a debit to fund an Amazon gift card in exchange for cashback rewards.

The Chase rewards card is a more traditional credit card.

As Amazon’s revenue continues to grow, reducing payment overhead is a way to increase profit or offer higher margins to merchants.

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Dominick DeJoy

Dominick DeJoy

Dominick DeJoy (@dominickdejoy) is the owner of Fintech Drift and a frequent contributor. With a history in finance and tech, he currently works at Preqin, previously was in commercial real estate investing, and was one of Bounce X’s (now Wunderkind’s) first employees.

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