And if Amazon does enter, expect them to compete aggressively on fees and prices. Amazon also has an Amazon.com Store card from Synchrony, the financial services company spun off by General Electric in 2015.
Amazon is talking with various banks to offer up a checking account service for younger customers who do not have credit cards and bank accounts.
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.
Amazon's plans aren't concrete yet, according to WSJ, but that sounds a little like what it's in the early stages of trying to do.
"The Amazon effect is everywhere", says Glazer.
IShares 0-5 Year TIPS Bond (STIP) Rises 0.04% for Mar 3
Inc. now owns 15,259 shares of the company's stock worth $2,735,000 after buying an additional 395 shares in the last quarter. Edge Advisors LLC lifted its stake in shares of iShares Russell 3000 ETF by 4.0% during the fourth quarter.
Amazon already offers merchants the ability to use Amazon Pay in their checkout flow, and Amazon Business (for business accounts) teamed up with Visa past year to provide enhanced transaction data on customer purchases made with Bank of America Merrill Lynch, Citi, and PNC U.S. issued Visa commercial cards.
Despite the billions of dollars going through Amazon's accounts yearly, one area the retailer hasn't really explored is payment processing.
That makes sense. Banking is a highly regulated business.
McKinsey To be sure, there are ways to offset this. For one, the company offers Amazon Cash, a platform that lets users add cash to an Amazon wallet by displaying a barcode in person. In addition, almost 50 percent would use a savings account if Amazon were to offer one to its clients.
And JPMorgan Chase, one of the banks Amazon is reportedly in talks with, has clearly been thinking about the Amazon effect for some time. JPMorgan and CapitalOne are among the possible participants, the paper said. "And so some of it gets passed on to the customer in terms of lower prices and lower spreads".