B2B Payments

Amazon Stepping Into SMB Card Space With Chase, Sources Say

Unnamed sources have told reporters that Amazon is looking to expand its small business (SMB) financing operations via the rollout of a commercial card for SMBs.

Reports in Fortune on Tuesday (March 13) said Amazon, which already has a relationship with JPMorgan Chase to offer consumer cards, is collaborating with the firm to develop a small business credit card for customers that use its eCommerce platform to procure office supplies.

The publication cited “people with knowledge of the matter” in its report; however, representatives from Amazon and JPMorgan declined to comment.

News of Amazon’s potential plans led to a dip in American Express (Amex) and Discover Financial Services shares, reports said. Amex is the largest issuer for small business cards in the U.S. While Amex has withheld purchase volume for this category of cards, JPMorgan has revealed small businesses spent about $72.9 billion on its card products.

More than 20,000 SMBs used Amazon to sell products and services in the U.S., the U.K. and Japan last year. A small business commercial card product would expand Amazon’s existing presence in the financial services space as well as in the B2B eCommerce space. The unnamed sources said the company hopes to integrate additional features with the card, including business insurance, linking them to an online platform. One source said the retailer is looking at using transaction data from the cards to offer more personalized rewards.

Amazon, along with other technology giants, has recently been pressing further into the small business financial services market. The company has already provided more than $3 billion in small business loans, the company revealed earlier this year.

“More and more, small and medium-sized businesses are choosing to join the Amazon Marketplace and sell right alongside Amazon to reach customers around the world. Entrepreneurs and small business owners are succeeding on Amazon — they sell half the products that Amazon customers buy, and more than 140,000 small and medium-sized businesses surpassed $100,000 in sales on Amazon in 2017,” said Peter Faricy, VP for Amazon Marketplace, in a press release back in January. “These businesses are reinvesting in their local communities, creating jobs and supporting local suppliers. We are proud of how the Amazon Marketplace helps empower so many small businesses, not just in the U.S., but around the world.”

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