Amazon will launch internal accounts for customers without bank cards

    Image: Silus Grok , CC BY-SA 2.0

    According to media reports, Amazon executives are negotiating with several banks to create their own payment service. The program is designed for young users who do not have bank cards. To pay for purchases, customers will need to deposit money into a virtual account and pay them on the Internet. According to statistics , 44.5% of online retailer customers do not mind using Amazon Bank.

    The idea of ​​creating a banking service is under development and it is not yet known whether it will be implemented. At the moment, Amazon does not plan to become a full-fledged bank, however, the creation of a payment service will help the company reduce the cost of the commission it pays to financial firms, and will also provide access to data on expenses and income of customers.

    For traditional banks, this will be a big problem, because commissions are their main income. According to the report of McKinsey consulting company, the storage and distribution of funds brings financial institutions 65% of the profit, while ROE is 20%, while lending and financing only 35% with an ROE of 4.4%.

    Participants in the financial system have long been concerned about the fact that large platforms such as Amazon, Facebook or Apple, sooner or later begin to compete with traditional banks. According to studies , Amazon is the most popular application among young people and 73% of them would like the service to create their own product in the field of financial services.

    US politicians used to be skeptical of this, but now the situation has changed. For example, Keith, the head of the Treasury Department of the US Treasury Department, said that it would be worth revising the traditional separation of the legislative separation of banks and retail.

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