Chances are, you’re the type of person who buys everything from Amazon while forcing competing companies to pray for a better day that might never come. In all seriousness, there’s no better place to shop online than Amazon.
The retailer is popular not only because it delivers a lot of options at affordable prices, but due to the freedom it gives to its customers. Now, despite having immense control over our shopping habit, Amazon, for some reason, is still trying to get deeper into our lives.
The Creation of a Hybrid Checking Account
A report from the Wall Street Journal has claimed that the retail giant is working on what it calls a “hybrid-type checking account” designed for customers. Amazon is in talks with several big banks such as JP Morgan Chase, and the main idea is to attract customers without a bank account and young people.
The other reason for this move is to allow the company to reduce the fees it pays to financial institutions on every transaction. Additionally, it gives Amazon the ability to get more insight into its customers spending habits and their income.
Now, entering the financial arena is not a first for the American online retail company. There’s already something called Amazon Cash, which is a service similar to PayPal. Basically, customers can add cash to a digital wallet for the purpose of buying goods and or services.
It’s not yet possible to make payments to individuals with Amazon Cash, but we won’t be too surprised if things take such a turn in the distant future.
Why Work with JPMorgan?
Well, the retailer is already in a partnership with the financial company due to Amazon credit card initiative. Interestingly enough, both companies are working on creating a healthcare service for employees, so for them to work together again should surprise no one.
Such a close relationship could later see the rise of Amazon attempting to acquire JPMorgan to become a full banking organization in the future. After all, the retail giant did buy Whole Foods and is looking into opening its own pharmacy, so becoming a banking institution isn’t too far off.
Amazon’s Hybrid Checking Account Might be D.O.A.
During its report, the Wall Street Journal notes that what Amazon is planning may never see the light of day. That’s because the company is still earning in the planning stages with partners and the fact that there’s no real idea at the moment of how the account would work.
For example, nothing is set in stone in regards to the possibility of customers using their Amazon checking account to pay bills, write checks, or even make withdrawals and deposits via an ATM.
Should Amazon ever get the chance of giving customers their own checking account, the company would have deep insight into customer finances, and that would allow it to provide better deals.
Right now, it’s a matter of whether or not shoppers want their entire shopping experience to be controlled by a single company. It might make for more seamless shopping, but at the same time, should Amazon become the victim of hacking, customers would be on the short end of the stick.