Small Business Credit Cards by Amazon

by Brian Riley 0

Woman hand holds a credit card and uses a laptop computer to shop online.

Our recent research on small business credit cards, expects spending for this segment to near three-quarters of a trillion dollars by 2020.  The market is over $500 billion in spend today.

Here is another market that Amazon is looking to make a mark.  Their recent partnership with Chase, the nation’s largest credit card lender, is sure to invigorate the market.  Chase already has five small business card offerings, with three cobranded small business card relationships (Southwest Airlines, United Airlines and Marriott)  and two cards associated with Chase’s Ink line of business.

  • The e-commerce giant is planning to offer a new, co-branded credit card that targets small-business owners, according to a Bloomberg
  • The card will offer entrepreneurs rewards points for purchases, and potentially even business insurance later down the line.
  • In return, Amazon plans to collect more transaction data, which could help it tailor the rewards and upsell its customers on new features.

Somewhere between the A-Z approach for Amazon is a quest to serve the full cycle of sales and finance.

  • It’s worth noting the company is not planning to become a bank, per se.
  • Amazon executives are said to be in talks with banking partners including JPMorgan Chase, with whom the company already works to facilitate its payments arm, Amazon Pay.

What we will be watching for over the coming months is how this new Amazon/Chase card will form.  Will it fit into the mainstream or differentiate?  Will the focus be on the never-ending quest for rewards or will the two firms break from the pack with special business services.

Either way, the market has plenty of room for growth.

Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group

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