Amazon (AMZN) is reportedly in talks with JPMorgan Chase (JPM) and Capital One Financial (COF) to create a checking-account-like product intended to attract teenagers that don't have credit or debit cards.
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The discussions, reported by Bloomberg, were in the early stages. The Wall Street Journal this month reported that Amazon was in early talks with JPMorgan and others to develop a product that resembled a branded checking account.
The move toward something like a checking account would mark the online retailer's latest move into the financial industry. Amazon's business-lending service also has reportedly partnered with Bank of America (BAC) to offer small-business loans.
Even as the e-commerce giant contributes to the siphoning away of shoppers from malls, teenagers generally don't have bank accounts. They also usually can't get them without parental approval if they're younger than 18. Many, also, would rather buy stuff at actual stores, the report said.
An account for cardless teenagers would allow Amazon to draw in that population early. It would also give the company, already armed with reams of customer data, a greater sense of their purchasing habits.
Banks Try To Keep Up
Goldman Sachs (GS) and Apple (AAPL) were also reportedly talking about ways to offer financing for potential Apple customers. Payments-tech companies such as Square (SQ) and PayPal (PYPL) are growing their lending businesses as well.
The big banks, facing upheaval from the tech world, have worked in recent years to embrace fintech and blockchain. Blockchain is the shared record-keeping technology behind Bitcoin that many say could also make banking more efficient.
Any Amazon partnership with JPMorgan would add to its existing ties, as the two companies and Berkshire Hathaway (BRKB) attempt to improve health care in a separate tie-up.
Amazon closed up 1.1% at 1447.34 on the stock market today, after tumbling intraday amid new threats from President Trump. JPMorgan rose 1.8%, Apple gained 0.8%, PayPal added 1.1%, and Square jumped 3.8%.
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