It was first reported earlier this month that Amazon could launch an own-brand checking account in partnership with big banks. The company was reportedly thinking about launching an account with banks like JP Morgan Chase & Co. The bank account would have been Amazon-branded but the report mentioned that it wouldn’t involve Amazon turning into a bank on its own. According to a new report today, Amazon’s bank account plan involves offering a checking account to teenagers.
Citing people familiar with the matter, Bloomberg reports that Amazon wants to tap the teenagers or Generation Z with its branded checking out. This generation’s relative lack of bank accounts and debit/credit cards poses a challenge to Amazon as it’s unable to convert them into customers. The generation also prefers to go to physical stores for their shopping needs also presents a challenge to the company.
The report adds that Amazon is in early discussions with JPMorgan Chase & Co. and Capital One to create a product that will be similar to a checking out. The account will be aimed at youngsters and those who don’t have plastic in their wallets.
Amazon has tried to tap into this market before as well with a pseudo-debit card called Amazon Cash which lets users drop off money at convenience stores like 7-Eleven to fund their online purchases on Amazon. However, the process can certainly be more streamlined and offering its own-brand checking out might help the company do just that.
There’s also a chance that Amazon will end up improving the banking experience with this effort since children under the age of 18 can’t normally sign up for a bank account without their parents’ consent and checking accounts aimed at high school students tend to have higher monthly and overdraft fees.
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