The next deflationary front: Amazon dips its toes into banking

The next deflationary front: Amazon dips its toes into banking

Amazon was not immediately available for comment.

According to the Wall Street Journal, Amazon is still in the very early stages of a potential banking foray, but even if the product does see the light of day, it'll position Amazon as more of a partner rather than a direct competitor.

"Pricing is a concern: if banks are cut out of the primary customer relationship, can they set prices high enough to make a return?"

Besides e-commerce and tech, Amazon also has its fingers in the brick-and-mortar retail, grocery, and shipping businesses, to name just a few.

Though Amazon now offers credit cards to customers through Chase, a checking account is a step deeper into the wallets of customers.

The WSJ reports that Amazon is in talks to launch a type of checking account.

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And if Amazon does enter, expect them to compete aggressively on fees and prices.

The company is trying to bring Amazon Pay to brick-and-mortar stores, the WSJ report said, adding that it is likely to begin with Whole Foods, which Amazon bought past year.

The company is a major media player too thanks to its Prime Instant Video offering. Among the companies Amazon officials are speaking with is JP Morgan Chase & Co., according to the newspaper. Instead, it would likely partner with a bank on the new product, as it does with credit cards.

The report helps answer one of the most often-asked questions on Wall Street: When's Amazon going to show up?

Buffett also owns big stakes in Bank of America, American Express, Bank of New York Mellon and Goldman Sachs.

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