Amazon may be getting into banking with Amazon checking accounts

Business / Tech

Amazon purchased Whole Foods is talking about a new shipping service to contend with UPS and FedEx and now wants to enter personal finance.

Amazon is talking with various banks to offer up a checking account service for younger customers who do not have credit cards and bank accounts. The company already offers lines of credit on their online store with other partners, but this program will target those without an established financial background.

While the talks still aren’t aimed at Amazon becoming a bonafide bank, they are geared towards offering a financial product to younger customers who may not have access to a bank account, the paper reported citing people familiar with the matter. JPMorgan and CapitalOne are among the possible participants, the paper said.

Banks are also eager to partner with startup financial products, which often offer all the services of a bank without a traditional account. A large consortium of consumer banks recently banded together on money-transfer app Zelle in a move to fight off the likes of Venmo.

The company has been on a push to expand its services, buying grocery store chain Whole Foods as well as proposing a new shipping service to challenge UPS and FedEx. Jumping into the banking business is yet another hook into the market for the company, if they manage to make a deal with a large bank.

The e-commerce company was founded 23 years ago and has been growing like a weed since. Many have scoffed at Amazon’s efforts to jump into businesses they assumed they had no business in. Cloud computing was one of those businesses, now Amazon Web Services is the largest cloud service on the internet.

The Whole Foods deal is still fresh so it will be interesting to see how well that purchase goes for the company. Even more interesting is that plan to build a delivery service to take on UPS and FedEx. The transportation costs alone for such a service has to be mind-blowing. The company is hitting many different battlefronts, but they do have the capital to wage war. Let’s see how they fare.

What do you think about Amazon offering financial products? Let us know in the comments below or on Google+, Twitter, or Facebook.

  Source: Business Insider
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