Amazon.com, Inc. (NASDAQ:AMZN) announced that the company is considering rolling out a new type of checking accounts aimed at teens.
The e-commerce retailer has been dominating the millennial market, yet Generation Z shoppers are still opting to shop at physical stores over shopping online. The main reason for this is the fact that they like to try out clothes, plus teens don’t have credit cards to shop online.
However, Amazon’s initiative would create checking accounts for youngsters who have no credit cards on their wallets. The company made this decision after collecting information from youngsters and realizing that they have not been shopping frequently on its e-commerce portal.
The answer to this conundrum is the creation of a pseudo-debit card called Amazon Cash that allows teenagers to drop off physical money at locations such as 7-Eleven and other convenience stores. They can then add it to an Amazon wallet for online use.
Kids under the age of 18 are not able to sign up for a bank account without parental consent, and checking accounts for high school students usually include monthly service charges and overdraft fees. Amazon could cash in on its idea as it would not require youngsters to pay these fees in order to shop online.
What do you think of Amazon’s idea–will teen checking accounts set the shopping world aflame?
AMZN stock is up 1.2% Thursday.
