E-commerce giant Amazon may be entering a new realm by offering financial services, according to a report by The Wall Street Journal. The Seattle-based behemoth is apparently looking to collaborate with big institutions like J. P. Morgan Chase to offer checking accounts to customers.
Though a final product has not been unveiled or formally confirmed, it is claimed that Amazon does not aim to become a bank. The company did not immediately respond for comment.
Though Amazon offers credit cards to customers through Chase, a checking account is a step deeper into the wallets of customers. It is reported that such accounts seek to appeal to a younger audience, perhaps like the demographic most closely affiliated with Amazon’s digital-first identity.
Amazon has recently taken marked steps to step outside of the strictly digital landscape, announcing in June its acquisition of Whole Foods for $13.7 billion and its independent products, such as digital assistant Alexa. Since Amazon snapped it up, Whole Foods has seen major changes implemented by the e-giant, including price cuts and benefits for Amazon cardholders for purchases. The firm has also launched a range of fashion-focused projects including Prime Wardrobe as well as several private-label lines.
If Amazon’s financial goals are confirmed, it would mark yet another venture between CEO Jeff Bezos and J. P. Morgan Chase CEO James Dimon. The two announced a partnership in January to lower health care costs for their respective U. S.-based employees, in conjunction with Berkshire Hathaway’s Warren Buffett.
Last year, Amazon accumulated $177.87 billion in sales and revenues, a $41.88 billion increase from 2016.