Comments (10)

Nov 13, 2018

Amazon is not buying a bank the size of BoA. If they were going to start in that direction then they'd create their own credit card to test the waters.

  • Associate 2 in CorpFin
Nov 13, 2018

Don't they already have a credit card offering?

Nov 13, 2018

Just looked it up. There apparently are four varieties, article from 2017. I literally didn't know so that doesn't bode well for that area. Either way, I don't really see the need for them. I think they would acquire something like a PayPal if they wanted to go the "owning the finances" route.

Nov 14, 2018

Amazon has a credit card offering in the same way that Disney or Starbucks does. It's issued by Chase and it's on the Visa network.

Most Helpful
Nov 14, 2018

Below is just my own view based on my understanding of the banking landscape and the tech space...

Their first major deep moves into finance are going to be payments. Banking as a whole is veryyyy regulation-heavy and you wouldn't enter that arena as a tech company unless the benefits from data insights far outweigh the regulatory oversight. Chances are they'll milk out deep partnerships with banks to get a better understanding on the dynamics before going off on their own.

Still, there's still tons of low hanging fruit in payments which is where a majority of the rich data on consumer behavior is coming from. It's the Amazon approach: dominate small portions of the consumer little by little and leverage your dominance to enter ancillary spaces. Own the pie that way rather than eating the whole thing at once and try to chew it down

    • 2
Nov 14, 2018

Amazon made an unsuccessful attempt to buy capital one in early 2017 I believe - So I could see them going that route.

Nov 14, 2018

Just fyi for guys mentioning payments, they launched Amazon Pay (competes with PayPal) a few years ago. Great product.

Nov 14, 2018

Not before they buy a drugstore chain.

Nov 14, 2018

jeff who?

Nov 14, 2018
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