Amazon may be getting into banking with Amazon checking accounts

Ann Santiago
March 6, 2018

Amazon is reportedly considering launching a checking account-like product with some big banks like JP Morgan Chase & Co.

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.

For years, speculation has bubbled that Amazon and other tech giants could move into banking, but so far these firms have only dipped their toes into areas such as payments and lending.

Nevertheless, the survey found nearly 1 in 4 consumers said they'd have less trust in Amazon than in a traditional bank, while only 17 percent said they'd trust Amazon more. Just last week, a LendEDU survey revealed that 45 percent of respondents were at least open to the idea of using Amazon as their primary banking account.

That makes sense. Banking is a highly regulated business. The companies together employ more than 1.1 million workers.

Amazon has also muscled its way into shipping, perhaps to the detriment of FedEx and UPS, with the purchase of stakes in two cargo airlines for its Prime Air service.

It's important to note that the venture wouldn't include Amazon's transforming into a bank, The Wall Street Journal noted. "Ultimately, Amazon is in fifth gear, trying to double down on the consumer and the finance vertical looks like the next step (through partnerships) of adding to the Amazon flywheel".

To be clear, this does not mean the retailer will be opening up their own bank.

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