Summary List Placement
Amazon is reportedly on the hunt for an issuer to take over its credit card portfolio, which JPMorgan Chase has been managing since 2002, per Bloomberg.
The card portfolio contains more than $15 billion in loans and an estimated $50 billion in annual volume. Sources told the outlet Chase is prepared to step away from the portfolio, possibly because the card’s various perks—including 5% cash back on Amazon.com and Whole Foods purchases—may have posed some profitability challenges.
Synchrony and American Express are among the contenders—here’s what adding Amazon’s card business might mean for both players:
For Synchrony, bringing in Amazon’s card business would reinforce its digital push. The issuer already has a relationship with Amazon: It currently manages both a private-label card and secured card for the etailer. But bringing in Amazon’s cobrand business would push it further into the lucrative digital space, which it said was a key focus in its latest earnings. Amazon’s card business could also build out Synchrony’s cobrand card purchase volume—which hit $54.1 billion last year—and make up for past losses, cementing the issuer’s leadership position in the cobrand space.
Amazon’s card portfolio could help diversify …read more
Source:: Businessinsider – Finance