Amazon (NASDAQ: AMZN) is in talks with several leading banks to offer a "checking-account-like" product for customers, according to The Wall Street Journal. The move makes sense: A recent survey by LendEDU found that almost half of its 1,000 respondents were "open to the idea of using an an account created by Amazon as a primary bank account."
Additionally, 50% of respondents were "open to the idea of using a savings account created by Amazon." Over half of Amazon Prime members (52% for primary banking and 58% for savings) were open to letting Amazon handle their accounts, indicating that Prime members trust Amazon more than non-members.
Continue Reading Below
Amazon wouldn't be the first megaretailer to expand into banking. Walmart (NYSE: WMT) offers banking services in Canada and Mexico, and has U.S. checking accounts via a partnership with Green Dot Bank. U.S. regulators thwarted Walmart's attempts to become a full bank, but that could change in the future.
Amazon's Chinese rival, Alibaba, also offers online banking, loans, and mobile payments through its affiliate Ant Financial.
Launching checking accounts could tighten Amazon's grip on its consumers -- and possibly disrupt the banking industry.
Offer from The Motley Fool: The 10 best stocks to buy nowMotley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. In fact, the newsletter they run, Motley Fool Stock Advisor, has tripled the S&P 500!*
Tom and David just revealed their ten top stock picks for investors to buy right now.
*Stock Advisor returns as of March 5, 2018.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Leo Sun owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon. The Motley Fool has a disclosure policy.