Amazon Explores New Checking Accounts Product

Amazon Explores New Checking Accounts Product

Amazon Explores New Checking Accounts Product

"The talks with financial firms are focused on creating a product that would appeal to younger customers and those without bank accounts".

The WSJ said that talks are in initial stages and that nothing may actually come from them.

A dive into the financial sector would be another addition to Amazon's growing list of attempts to influence its customers' everyday lives. Amazon did not immediately respond for comment.

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One problem with, Inc.'s plans are restrictions it may face from its rivals and legislators. It's unclear how fully-featured the checkings accounts would be - is this just another PayPal service, or a full checking account with access to bill payments and the worldwide banking system? The companies together employ more than 1.1 million workers. As such, those that are comfortable in the prospective market on Amazon's radar can begin to feel a little uneasy, and we would imagine that emotion is pretty common among banking industry execs this morning. Whether it's logistics, healthcare, or finance, Amazon's answer to inefficiencies in the marketplace is just to do the same thing, but cheaper. This includes buying up Whole Foods a year ago and recent plans to offer its own shipping service, which would reduce its need for United Parcel Service, Inc.

Amazon already has a small business lending arm, but a move for retail bank accounts would mark a new front in its expansion efforts.

Buffett also owns big stakes in Bank of America, American Express, Bank of New York Mellon and Goldman Sachs.

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