Amazon Researching A Banking Product

Amazon is in talks with JP Morgan and Capital One to offer checking account-esque services to customers, according to the WSJ. Amazon.com didn't immediately return a request for comment.

The reports says that Amazon is still only in the early stage of plans to offer a checking account service for its customers.

The newspaper reported Monday that the Seattle-based company is working on a product that would appeal to younger customers and those without bank accounts.

In late morning trading, Amazon was at US$1,058.97, up US$8.72, JPMorgan Chase was at US$113.95, up 63 United States cents, and Capital One was at US$97.14, up 42 U.S. cents.

Though Amazon now offers credit cards to customers through Chase, a checking account is a step deeper into the wallets of customers. This includes buying up Whole Foods a year ago and recent plans to offer its own shipping service, which would reduce its need for United Parcel Service, Inc. Amazon is also weighing entering into the health and prescription drugs business. 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. Offloading key tasks to a bank could help Amazon avoid some of the strict regulations imposed on financial service providers, which would ease go-to-market efforts.

It turns out that healthcare may not be the only new sector that Amazon is venturing into.

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

  • Wendy Palmer