Online retailer Amazon is planning a small business customer credit card to support its relationship as a supplier of SMEs, according to reports.
Bloomberg reported that the e-commerce site has been in talks with JPMorgan Chase & Co. on a co-branded credit card for small business owners who shop on its website.
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Amazon declined to comment to Bloomberg.
The reports added that the online giant was looking for ways to drive market share away from factory equipment providers and office equipment suppliers.
Reports stated that the credit card will feature a rewards points system for purchases, with the option of adding offerings such as business insurance through a portal for small-business customers. According to one source, Amazon would use its vast transaction data to help tailor the rewards.
Amazon already offers two consumer credit cards for consumers with JPMorgan and GE spin-off Synchrony Financial which offer 5% cash back on purchases.
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By GlobalDataAmazon Lending, the business loans arm of the online marketplace, lent over $1bn (£790m) in business loans to SMEs between 2016 and 2017.
The internet giant launched its business lending service in 2011, and has since provided $3bn of short-term loans to 20,000 businesses selling their products on its marketplace.
Peeyush Nahar, vice president for Amazon Marketplace, said last year: “We created Amazon Lending to make it simple for up-and-coming small businesses to efficiently get a business loan. Amazon is providing capital to small businesses to help them expand inventory and operations at a critical period of their growth.”
The company said that half of the products sold on its service are from small businesses, and claims 300 million active customers.
Amazon’s loans have been issued to small businesses in the US, UK, and Japan, with amounts ranging from $1,000 to $750,000. According to Amazon, over half of businesses it lends to will seek a second loan.
