Amazon and J.P. Morgan launched their first co-branded Visa credit card in 2002, and the portfolio is estimated to have $15 billion in loans, according to the sources, per Bloomberg. The bank could get a 15 percent premium on top of the balance if Amazon decides to move forward with a change.
People spend more than $50 billion a year on the card, Bloomberg reported, citing a Packaged Facts study.
J.P. Morgan is prepared to step away from the Amazon portfolio, sources told Bloomberg.
The numerous cash-back rewards and other perks make it tougher for lenders to make money. In a co-branded situation, revenue is typically shared with the merchant partner, Bloomberg reported.
The J.P. Morgan Chase Amazon card offers Amazon Prime members 5 percent cash back on good bought on its site or at Whole Foods. Among the top 10 co-branded cards, Amazon’s portfolio is the fastest-growing, according to a 2019 study by Packaged Facts, per Bloomberg.
Amazon already partnered with AmEx to extend cards to small businesses. The eCommerce giant also has a partnership with Synchrony on its private-label card and a secured card launched together in 2019, according to the article.
Citi and AT&T have renewed their co-branded credit card partnership and are making moves to increase customer engagement and develop more products. Synchrony and Sam’s Club have teamed for a co-branded card. Goldman is in talks with JetBlue to take over its card portfolio.
