Amazon may be getting into banking with Amazon checking accounts


Amazon has been in talks with JPMorgan Chase JPM and Capital One COF about its proposal to launch a product similar to traditional checking accounts, TheWall Street Journalsaid Monday.

Amazon is looking to team up with banks to build a checking account-type product. 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.

The process is still in its early stages and may not be completed, the report said.

In other words, Amazon, a known disruptor, is not coming for the banking industry.

The ecommerce giant also offers a pseudo-debit card, Amazon Cash, that lets consumers add cash to an Amazon wallet and purchase items online without a credit card.

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Talks have also taken place with USA credit card lender Capital One, the Wall Street Journal said.

Though Amazon now offers credit cards to customers through Chase, a checking account is a step deeper into the wallets of customers.

However, the move would not mean Amazon itself becoming a bank, but rather a white label arrangement with the US's biggest lender.

"It's a logical extension that banks would partner with tech firms", Mike Mayo, an analyst at Wells Fargo & Co, said. Amazon did not immediately respond for comment.