Markets

Amazon mulling checking-account like product with big banks

Amazon mulling checking-account like product with big banks

The e-commerce giant is in talks with JPMorgan Chase according to the Wall Street Journal. Amazon was not immediately available for comment.

"Pricing is a concern: if banks are cut out of the primary customer relationship, can they set prices high enough to make a return?"

The benefits of such an account for Amazon's current customers are unclear at the moment but product discounts, faster payment processing and the potential elimination of standard checking account maintenance fees all seem like distinct possibilities.

In the United States, consider that millennials list Amazon as the app they can't live without, or that 73% of millennials say they would be more excited about a new financial-services offering from Google, Amazon, Paypal, or Square than their bank.

Sources familiar with the situation told the outlet that while the discussions are still in its early stages, the final product could include an Amazon-branded type of checking account that would appeal to younger customers and those without bank accounts. 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.

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The company is a major media player too thanks to its Prime Instant Video offering.

Amazon has already ventured into other business areas including shipping and medical care. It said Amazon Pay allows consumers to pay for products on third-party sites without reloading their credit card information.

Investors will be watching whether or not Amazon does wind up doing more deals with big banks - and maybe even getting Bufffett to assist in any joint ventures as well.

Fresh off its acquisition of Whole Foods in August, Amazon has made moves to build its own delivery service that would rival United Parcel Service and FedEx. Scandal ridden Wells Farg is still one of Berkshire Hathaway's top holdings.