From small business credit cards to checking accounts and even mortgages – it seems Amazon is always on the mission to add more services into its already multifaceted services. Clearly, the question about Amazon taking over financial services and wealth management is not about ‘if’, but a matter of ‘when’.
The rumors about the world’s largest online retailer company making a major move into financial services are getting louder.
As a key player in the e-commerce platform, Amazon has established tools to increase the number of merchants and enable them to sell more in their platform, increase the number of customers and encourage them to spend more, and promote seamless buying and selling transactions.
All in all, Amazon does not shun in making efforts to promote its core strategic goal which is ultimately to increase participation in their platform. Thus, the possibility of Amazon extending its branches into the realms of financial services is inevitable.
And, even if Amazon may not be building a traditional banking platform, the company has essentially taken the core functions and components that are typical in traditional banks and tailored them to suit the needs of their customers, both the consumers and merchants.
Amazon’s Key Financial Pillars
Amazon has had the history of constantly looking for innovative ways to serve the users of their platform.
The company has made various attempts to broaden its growth and expand its product strategies, including in the financial services system. Let us take a glimpse at the components in financial services where Amazon is already competing with:
- Amazon Payments
Over recent years, Amazon has made bold efforts in their payment infrastructures and services. The company has always been dedicated to making payment transactions as efficient and convenient as possible for the customers. From pay with Amazon, launched in 2007, the company’s payment system has evolved into a more advanced digital wallet.
Amazon is currently working on a beta for their latest payment technology called “Just Walk Out” which will grant access to stores and let customers to grab-and-go without having to pay for their purchase physically at the counter.
- Amazon Cash
Introduced to the public in April 2017, Amazon Cash allows customers who do not have bank accounts to deposit cash without fees via a digital account by simply showing a barcode at Amazon’s retailer partners.
- Amazon Lending
More than other areas of financial services, Amazon has developed a special interest in small business and consumer lending in the forms of partner cards. On top of this, the company offers exclusive perks for the cardholder members, which not only boost customer loyalty but also attract them to spend more on Amazon.
Amazon – the Next Generation of Financial Services
Amazon’s financial services strategy has been targeted towards their core goal that is, increasing participation of both consumers and merchants on its platform.
That said, there is no doubt that Amazon has the vision, the tools and infrastructures and the technologies to build and deliver and position itself as the next generation in financial services and wealth management. It’s just a matter of time.