SEATTLE – Amazon will soon offer U.S. small businesses a co-branded credit card, as it continues to press for dominance in office supplies, Bloomberg reports. The online retailer wants business customers to shop at Amazon for paper reams, factory parts, pens and other office essentials with the co-branded credit card.
Amazon has been discussing the card with banks, including JPMorgan Chase & Co. In the fall, the online retailer debuted a Prime membership program with fast, free delivery for businesses, which some interpreted as it going after office supply stores like Office Depot and Staples, as well as factory-equipment stores like Fastenal Co. and WW Grainger Inc.
The new Amazon credit card will have rewards points for purchases, and could lead to additional services like business insurance. The online retailer also lends billions to more than 20,000 small companies that sell goods in the Amazon marketplace in Japan, the United Kingdom and the United States.
Amazon currently offers two credit cards aimed at consumers through Synchrony Financial and JPMorgan. Those cards have as high as 5% cash back on purchases. In addition, Amazon is talking with Capital One and JPMorgan on a financial product that would work similarly to a checking account.