Saturday, March 10, 2018

Amazon's Checking Account Push Shows Next Target: Swipe Fees - Bloomberg

Later in the article: "If 15 percent of Amazon shoppers switch to its new account, the company could save $250 million a year in so-called credit card interchange fees, according to estimates by Bain."

"Amazon is in early discussions with banks to create a product similar to checking accounts, people familiar with the matter said this week. Consumers with the account could link directly to Amazon and money could be moved using the bank-owned ACH network, for instance, with fewer fees. Amazon wants the account to appeal especially to millennials and those who lack bank accounts and credit cards, according to the people.

The plan, if it comes to fruition, is hardly an assured success. But few analysts think Bezos would stop there as he tries to expand Amazon’s reach into consumers’ economic life, pushing further toward things like car loans or mortgages."
Amazon's Checking Account Push Shows Next Target: Swipe Fees - Bloomberg
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