It’s been reported that Amazon is considering developing bank accounts for users and is in talks with several banks. The Amazon bank account would be predominantly aimed at younger customers and could also be a useful service for people who are ‘unbanked’, that is unable to access conventional banking services.
None of this means that Amazon itself will be becoming a bank. Under current rules in the USA, Amazon would not be able to make loans but a a partnership with a bank, JP Morgan has been mooted as a service provider. It’s thought that the new service might operate in a way similar to Apple Pay.
Amazon can collect deposits so long as it’s not issuing loans. I’d assume that if apartnership is created that it would be like the Apple Pay arrangement. Apple has a relationship with a number of banks, using their payment systems, but clearly, Apple is not in the banking business.
– Dick Bove, the Vertical Group
And the option of an Amazon bank account, could be surprisingly popular. According to a LendEDU survey, roughly 45% of people have said that they would be open to using Amazon as their primary banking account. 49.6% of this asked said they would use a savings account created by the company.
Nothing has been formally revealed and, as it stands, it seems likely that the service would be only available in the USA to begin with, if and when it launches. There has been speculation about such a move for some time. Banking represents an opportunity that speaks to Amazon’s priorities: they aren’t scared to enter any arena that offers them an opportunity to make money and they like services that knit shoppers more closely to the brand. Bank accounts could be a very lucrative opportunity.
7 Responses
No, Amazon have too much dominance in too many areas. I’d like to see them broken up. So, no, definitely not.
Hell no.
they’re not a real bank, and are known to operate on little or no profit.
the day the economy goes ass-up, are amazon going into liquidation or siphoning my bank account?
then when the truth comes out later, well, they’re not a real bank so you don’t get any of that real bank protection. sorry.
High time some one kicked the banking cartel’s complacent rump…
Had an Amazon credit card for a while, and we pay a lot with our credit card and those gift vouchers did add up. Long as you pay it every month.
Once they switched over to plain MBNA (no incentives) we moved to Amex/Visa Barclaycard Deal with cashback incentives (again this all adds up)….
Basically I don’t care who I bank with they are all the same. Obvious they would have to have proper bank status and protections in place.
They have to offer “decent incentives”. Even if it was Amazon….
Considering all the payout problems last year, plus unpayed vendor invoices (long, long overdue), plus an anti-helpful support – no way.
What are the chances of financial regulators being able to ensure a company as big as Amazon follows regulations ?
I can see them giving themselves the right to dip into people’s bank accounts to cover Amazon purchases, seller fees and (most worryingly of all) settlement of A-Z claims.