U.S. Bank Scores with Amazon Small Biz Card
Amazon approaches U.S. card issuance with a Chase-branded consumer card (this one is in constant use in my household), a PLCC card (issued by Synchrony), and small-business credit cards. The strategy is to link your Prime account to the card and generate reward points. A Shift in Partners U.S. Bank announced it had won the […] The post U.S. Bank Scores with Amazon Small Biz Card appeared first on PaymentsJournal .
Amazon has expanded its card issuance strategy by partnering with multiple financial institutions, including Chase, Synchrony, and U.S. Bank, to offer various credit cards, including small-business cards. The company's approach is to link Prime accounts to these cards, generating reward points for users. This move reflects Amazon's commitment to offering integrated financial services to its customers.
U.S. Bank recently announced that it had won the small-business credit card issuance program previously held by American Express for five years. This win solidifies U.S. Bank's position as a top-tier card issuer, particularly in the retail credit card market. The bank offers a range of co-branded and feature-rich card programs, from a basic secured card to the U.S. Bank Altitude Reserve Visa Infinite card, which competes with the Chase Sapphire. Additionally, U.S. Bank has a robust global merchant acceptance network and Elan, a company that issues over 1,000 white-label credit cards for small banks and credit unions.
The shift in partners for Amazon's small-business card program is not expected to significantly impact American Express, as the company is launching a new line of small-business credit cards under the Graphite moniker. Graphite is considered a top credit card plan for small businesses, so the loss of Amazon as a partner is likely to be minimal for American Express.
Amazon's card issuance strategy varies by region, reflecting the company's global presence. In some markets, such as Austria, Germany, the UK, and the United Arab Emirates, Amazon has partnered with Santander, Barclays, and Emirates Islamic Bank, respectively. However, in Australia, Canada, and France, Amazon does not have a card issuance partner.
In summary, Amazon's move from American Express to U.S. Bank for its small-business credit card program marks a significant milestone for U.S. Bank, establishing it as a top-tier small-business card issuer. This partnership also allows Amazon to offer a Mastercard-based card in parallel with its consumer card, which is issued by Chase through Visa. The global nature of Amazon's strategy ensures that it adapts to local markets while maintaining a consistent approach to card issuance and reward programs.
