Amazon already has a few services that might help illustrate its financial vision.
The checking-like account would be aimed at younger customers and those without bank accounts, according to The Wall Street Journal. With services like Prime Instant Video and Prime Music on offer alongside a recent slew of products coming from Amazon's acquisition of Whole Foods, it's clear the company wants to become their customers' one-stop shop for entertainment and shopping. Famed investor Mark Cuban says it will produce "the world's first trillionaires", but that should still leave plenty of money for regular investors who make the right trades early. Rather, it would focus on partnerships that would allow the company to expand into the financial sector while reducing the fees it pays banks and payment processors. Free for 14 days - no credit card required!
And previous year, Amazon dipped its toes into the deposit business with Prime Reload, which gives customers a 2 per cent bonus when they use their debit card to move funds from a bank account to an Amazon balance that they use for transactions on the website. By handling the transaction themselves, Amazon can avoid paying fees to Visa V and Mastercard MA.
In other words, Amazon, a known disruptor, is not coming for the banking industry.
Amazon shares were little changed at US$1,488.82 (RM5,818) at 10.10am in NY. Earlier this year, it was announced that Amazon, Berkshire Hathaway, and J.P. Morgan were teaming up to reduce health care costs for their employees. Those cards come with much as 5 per cent cash back on purchases. That may soon include banking services, as well.
Amazon declined to comment on the story.
With Amazon's host of customers and impressive market value, some have wondered whether the e-commerce giant would eventually seek to disrupt the banking system.