Amazon Developing Checking Accounts for the Unbanked
Amazon is in the early stages of forging a partnership with JPMorgan Chase. The ecommerce platform is hoping to reach unbanked and underbanked Americans—those without a traditional checking account. Amazon is said to be developing a “checking account-like product,” according to The Wall Street Journal.
LowCards.com reached out to Amazon to confirm the story but did not get a response from the company.
The goal is simple: unbanked Americans rely mostly on cash to complete their transactions. At this time, it is difficult to use cash for Amazon transactions. Users can load cash to their Amazon Cash accounts, but that takes away from the convenience of online shopping. The new checking account service would streamline the process so more people would have access to Amazon goods and services.
Amazon already has relationships with U.S. Bank and Capital One. Users can pay bills and check account balances for their financial accounts using Amazon Alexa. Amazon may capitalize on those existing relationships to fuel the growth of its checking account service.
Amazon may also use its relationship with Whole Foods and Kohl’s to provide an accessible physical presence for web-based programs. For instance, select Kohl’s locations currently process returns for purchases. Those locations could become customer service branches for unbanked users with an Amazon checking account.