Amazon shares closed higher again in the US Monday, as the tech and retail behemoth is reportedly in discussions to offer more financial banking options to potential customers.
According to a WSJ report, Amazon is in talks with J.P. Morgan Chase and Capital One, about creating an Amazon bank account. The likely plan behind the idea, is to gain more customers from the ‘unbanked’ across the US.
Amazon shares closed 1.56% higher at $1,523.61. The stock is also trading in the green in after-hours activity, too.
Preliminary banking talks
The report says that Amazon is in talks with a number of US banks, over the creation of an Amazon branded bank account. The key is that it appeals to those without a bank account or credit card and can be easily opened and used to buy products on the Amazon website.
Amazon already offers a credit card to Amazon Prime members. And, it works in partnership with 7-Eleven, CVS and other stores, to allow potential shoppers to bank between $15 and $500 dollars in an Amazon account there, to then spend online.
This further probable move into the financial services sector will open Amazon up to increased regulatory burdens, however. But, if it can entice more of the quarter of the US population who doesn’t have a bank account or credit card, to shop on their site, it could prove a worthwhile endeavour.
Amazon confirms GameSparks purchase
Separately, Amazon has also confirmed that it bought GameSparks last year, a game infrastructure and live operations company. The deal will likely expand Amazon Web Services offerings and will see it compete with Microsoft Azure’s PlayFab.
And, ensuring the global retailer isn’t leaving anyone out, it has also expanded its 2-hour Whole Foods delivery programme through Prime Now, to include Atlanta and San Francisco.
This means a selection of Whole Foods groceries can now be delivered on the same day you order in six regions, with plans for a further expansion of the service throughout 2018.