Amazon Is Planning to Create a Checking Account-Style Financial Product

Adjust Comment Print

Amazon did not immediately respond for comment.

The Wall Street Journal said it is too early to tell what exactly the product will look like, noting that it's unclear "whether it would give customers the ability to write checks, directly pay bills, or access to a nationwide ATM network". It will also stream video series it owns to a TV stick it designed, commanded by a voice-recognition AI developed in-house, running on the cloud services it provides to hundreds of thousands of customers. It is reported that the checking accounts seek to appeal to a younger audience, perhaps like the demographic most closely affiliated with Amazon's digital-first identity.

Bank stocks barely budged Monday on the reports.

Amazon apparently wants to be your bank. It's hard to imagine Amazon wanting to create its own banking charter.

Broadcom Cries Foul As Qualcomm Delays Shareholder Vote On Takeover
Last month, Qualcomm increased its own takeover bid for NXP Semiconductors, defying a demand by Broadcom that it not do so. Once Broadcom is a US company, CFIUS would no longer have authority to review a proposed transaction.

But Amazon-branded checking would let customers seamless pay for everything they already get from the site. The companies together employ more than 1.1 million workers.

The company is trying to bring Amazon Pay to brick-and-mortar stores, the WSJ report said, adding that it is likely to begin with Whole Foods, which Amazon bought past year. It's a miracle you're not reading this on an Amazon-designed smartphone.

Additionally, the potential partnership with JPMorgan Chase would be the second major agreement with the online retailer this year. According to a LendEDU survey released Wednesday, roughly 45 percent of respondents were open to using Amazon as their primary banking account, while 49.6 percent would use a savings account created by the company. Amazon also has an Store card from Synchrony, the financial services company spun off by General Electric in 2015.

The report helps answer one of the most often-asked questions on Wall Street: When's Amazon going to show up? Scandal ridden Wells Farg is still one of Berkshire Hathaway's top holdings.