It is not surprising that Amazon is continuing to become a major business conglomerate and venturing into an industry like banking.
After tackling industries like retail, food and grocery, and delivery, there have been talks of an option to open an Amazon checking account sometime in the near future.
There has not been much success in getting other online merchants to accept their payment system, Amazon Pay, so Amazon is attempting to work out something better for itself and something that targets the people that are already coming to them for services.
A couple of years ago, the concept of Amazon creating checking accounts was brought to the table, however, it was quietly scrapped.
Talk of the concept started back up again recently and seems to be gaining traction.
What is an Amazon Checking Account?
The concept of an Amazon checking account is in the works.
If you are a frequent Amazon shopper, getting an Amazon checking account may seem like a great option.
Amazon would not be becoming a bank itself but will be working with an outside financial institution.
One financial institution that is being thrown into the discussion is the big name known as JP Morgan & Chase.
Working with another financial institution, they would create an Amazon-branded checking account.
You would get a debit card just like a normal checking account.
People today are so familiar with Amazon so it will be appealing and obvious to just open a checking account with them.
The concept of an Amazon checking account will greatly affect those who shop on the website, the people who shop at its Whole Foods grocery stores, Kindle readers, those that use Amazon Prime Video streaming service, and even people that use its digital assistant, Alexa.
What are the Benefits of an Amazon Checking Account?
While there is not an official list of the benefits and appealing factors to creating an Amazon checking account, below is a comprehensive list of the possible benefits of opening and having an account:
- It would provide an entirely digital and mobile experience. You could pay bills and buy your groceries all in one place, providing ultimate convenience all in one mobile app or site.
- There is speculation that Amazon will offer special deals and perks for those who open a checking account with them. This will most likely make it even easier for you to buy products from them, creating an interdependent and mutually beneficial relationship.
- You can most likely expect little to no monthly fees to open and maintain the Amazon checking account. This will turn people away from those big bank fees easily because no one wants to be dealing with them, to begin with. If you are set on paying little to no banking fees, keep in mind there are other options. Do not feel forced into getting an Amazon checking account just because you fear or despise fees.
What are the Disadvantages of an Amazon Checking Account?
Similar to how there is no official list of benefits, we won’t know the disadvantages to have an Amazon checking account until it is released and people actually start using it. Nevertheless, below is a comprehensive list of the possible disadvantages to opening and maintaining an Amazon checking account:
- You would essentially be giving Amazon all of your business, from banking to shopping, to paying bills.
- Amazon would have access to your spending data. This means that there will be a lot more targeted ads.
- This is saving Amazon money in a sense because they no longer have to pay processing fees to other banks and credit cardholders. You’re also spending money on their products, which is saving them money as well.
- If this checking account targets underbanked younger people, there may be less desirable for these people to use actual banks and financial institutions in the future.
- Since the checking account will offer such an easy way to streamline the spending on Amazon, you may overspend exponentially. Amazon already makes it easy to spend money, this accelerates that. Amazon is, after all, a retail store, they are not looking out for you to save, budget, or invest. Amazon ultimately wants you to spend your money and preferably spend it on them. This Amazon checking account that they would be offering is a product, even if it is offering a service.
- There is some speculation that if there is so much access to spending data, that Amazon will raise prices on items that are looked at a lot. They may also raise prices if they know how much money the consumer has to spend.
How Do You Get One?
It is important to ask yourself: “Should I get it?” when discussing the Amazon checking account.
There are possibilities of benefits and disadvantages that could sway you to be a supporter or to be an adversary.
The Amazon checking account is just a concept at this point, so there is no way to get it.
However, it can be expected that once it does come to fruition, it will be super easy to set up and use, especially when browsing the Amazon site or app itself.
So at this point, it is not a question of should you get it, but a question of would you get it?
In the case that it comes out and you choose to get it, make sure you read the privacy fine print to ensure you are not getting your privacy swindled out from under you.
Most businesses don't only operate through Amazon, and it's suggested that ecommerce businesses diversify their online storefronts.
Apply for a Statrys Business Account today and you'll give your business access to multiple payment gateways and the ability to manage and keep over 11 currencies in your account. No funny business, no mystery fees.