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Amazon will launch internal accounts for customers without bank cards



Image: Silus Grok , CC BY-SA 2.0

According to media reports, Amazon’s management is negotiating with several banks to establish its own payment service. The program is designed for young users who do not have bank cards. To pay for purchases, customers will need to deposit money into a virtual account and pay them online. According to statistics , 44.5% of online retailer customers do not mind using the “Amazon Bank”.
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The idea of ​​creating a banking service is at the development stage and it is not yet known whether it will be implemented. At the moment, Amazon does not plan to become a full-fledged bank, but the creation of a payment service will help the company to reduce the cost of the commission it pays to financial firms, as well as give access to data on expenses and incomes of customers.

For traditional banks, this will be a big problem, because commissions are their main income. According to the report of the consulting company McKinsey, the storage and distribution of funds brings financial institutions 65% of the profits, while the ROE is 20%, while lending and financing brings only 35% with a ROE of 4.4%.

Participants in the financial system have long been concerned about the fact that large sites, such as Amazon, Facebook or Apple, will sooner or later begin to compete with traditional banks. According to research , Amazon is the most requested application among young people and 73% of them would like the service to create its own financial services product.

Previously, US politicians were skeptical, but now the situation has changed. For example, the head of the currency department of the US Treasury, Keith, stated that the traditional division of the legislative division of banks and retail trade makes sense to reconsider.

Other materials on finance and stock market from ITI Capital :


Source: https://habr.com/ru/post/351644/

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