Amazon and JPMorgan Chase/Visa will stay together.
Citing sources said to be close to the matter, The Wall Street Journal reported that JPMorgan Chase’s deal with Amazon to offer its co-branded Visa credit card has been renewed. Amazon and the bank have had a relationship since 2002.
While this deal may seem routine since the duo have had a partnership for 14 years, WSJ reported that there were sources who indicated there may have been other card issuers in the mix after Amazon’s card business. But the report doesn’t name any specific issuers. Nor does it provide the financial details behind the renewed contract between Amazon and JPMC.
American Express lost its co-branded deal with Costco, which eventually went to Visa/Citi. The Costco relationship accounted for 10 percent of Amex cards, 20 percent of its loans and a healthy portion of its annual volume. That alone speaks to the value of co-branded card deals with retailers for credit card issuers. Those deals are often pitched to consumers because of the perks specific to that brand and rewards to cash in at that retailer, among others.
Overall, Amazon has also seen more of its Amazon Visa cardholders venture into Prime membership, which encourages customers to shop more of Amazon because of the Amazon rewards associated with the credit card rewards. Amazon Visa cardholder participation has remained steady at around 15 percent of total U.S. customers, according to a Consumer Intelligence Research Partners report.