Why Amazon Might be Looking to Team up With Big Banks

Why Amazon Might be Looking to Team up With Big Banks

Why Amazon Might be Looking to Team up With Big Banks

On top of lowering transaction processing expenses, Amazon's proposed checking account service reportedly has another objective.

Either way, it's yet more proof that Amazon is examining every service that costs it money and wondering if it can do better itself.

The checking-like account would be aimed at younger customers and those without bank accounts, according to The Wall Street Journal. Amazon didn't immediately respond to an emailed request for comment outside of normal business hours in Seattle.

That JPMorgan Chase & Co.is seemingly among the first banks Amazon has approached about the project is most likely no coincidence. It's unclear how fully-featured the checkings accounts would be - is this just another PayPal service, or a full checking account with access to bill payments and the global banking system? The WSJ also noted that Amazon is actually quite cozy with both JPMorgan and Capital One.

Amazon already offers a Prime rewards credit card from JPMorgan Chase that is issued by Visa.

Amazon is now growing its presence in traditional, brick-and-mortar retail with its own stores and last year's acquisition of Whole Foods.

Citing people familiar with the matter, The Wall Street Journal reported today that Amazon is in early talks with major financial institutions and that there's still a possibility that they might fall through.

Buffett also owns big stakes in Bank of America, American Express, Bank of New York Mellon and Goldman Sachs.

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