Amazon.com, Inc. (NASDAQ:AMZN) is reportedly working on a checking account product for its customers.
According to a recent report, the online retailer is looking to expand its services by teaming up with a banking company for a checking account product. The report claims that the company is seeking the help of JPMorgan Chase & Co. (NYSE:JPM) for the effort.
If the reports are true, then it means Amazon.com, Inc. is finally moving forward with plans it has been sitting on for years. It’s possible that the expansion into banking could allow the company to reduce the fees it pays to banks and payment processors. However, it will first have to get the service up and running.
One problem with Amazon.com, Inc.’s plans are restrictions it may face from its rivals and legislators. A similar effort from Walmart Inc (NYSE:WMT) roughly a decade ago failed after facing these same types of trouble.
The reports says that Amazon is still only in the early stage of plans to offer a checking account service for its customers. It’s completely possible that the company will shy away from the effort and nothing will happen, reports The Wall Street Journal.
News of this expansion is a familiar tune to anyone that has been keeping up with Amazon.com, Inc. The company has been continuously working to expand its business out and reduce its reliance on other companies. This includes buying up Whole Foods last year and recent plans to offer its own shipping service, which would reduce its need for United Parcel Service, Inc. (NYSE:UPS) and FedEx Corporation (NYSE:FDX)
AMZN stock was up 1% as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.