SEATTLE – American Express and Amazon will issue a cobranded credit card aimed at small businesses, CNBC reports. The announcement is part of a bigger, multiyear partnership between the companies.
AmEx beat out other banks in the deal, which will result in Amazon’s first card for small companies. The online retailer had been considering ways to extend its business with small retailers and companies through things such as a Prime business membership program. Amazon also loaned $3 billion to thousands of small businesses that use its website to sell products.
Earlier this week, the U.S. Supreme Court ruled for AmEx in a case involving retailer fees. This decision means American Express can continue to enforce provisions of its contracts with merchants, preventing merchants from discounting other payment cards and not American Express. It remains to be seen whether the reasoning in the case will be applied to other credit card networks such as Visa and MasterCard.
Amazon currently offers two credit cards aimed at consumers through Synchrony Financial and JPMorgan. These cards have as high as 5% cash back on purchases. In addition, Amazon is talking with Capital One and JPMorgan about a financial product that would work similarly to a checking account.