Amazon Drops Amex, Partners with BofA and Mastercard
On March 31, Amazon announced its decision to end an eight-year partnership with American Express in the small business credit card sector. Instead, it has teamed up with Bank of America and Mastercard to launch two new business credit cards. These new products are set to be available this spring, with a complete transition by August 14.
New Credit Card Offerings
The two new credit cards, “Prime Business Card” and “Amazon Business Card,” will be issued by Bank of America and operate on the Mastercard network. Both cards come with no annual fee. Prime members using the Prime Business Card will receive 5% cashback on Amazon purchases, while non-Prime members using the Amazon Business Card will get 3% cashback.
Both cards offer rewards for spending outside of Amazon and come with flexible credit terms. More details on the benefits are expected to be released in the coming months. This move aims to address the needs of small business customers for better rewards and cash flow management tools.
Transition and Existing Cardholders
During the transition period, existing cardholders will retain their current credit limits and interest rates. American Express cardholders will receive further guidance from both American Express and Amazon regarding account migration. This change does not affect Amazon's consumer credit cards.
Partnership with Bank of America and Mastercard
Bank of America, a leading credit card issuer in the U.S., has a strong presence in small business financial services, serving approximately 1.4 million small business customers. Courtney Kelso, head of payments at Bank of America, stated that this collaboration will provide small businesses with attractive rewards systems and easy-to-use expense management tools.
- Bank of America: Strong presence in small business financial services
- Mastercard: Emphasizes enhanced security and practicality for business payment tools
- American Express: Continues partnership with Amazon in other areas
Mastercard highlighted the evolving needs of small businesses for cash flow management, risk control, and growth tools. The collaboration aims to enhance the security and practicality of payment tools used by businesses daily.
American Express's Response
American Express spokesperson Julie Townsend responded via email, stating that despite changes in the co-branded partnership, Amazon remains an important partner. The two companies will continue to collaborate in other areas.
Final Thoughts
Amazon's strategic shift to partner with Bank of America and Mastercard reflects its commitment to enhancing the financial tools available to small businesses. This move is designed to provide more competitive rewards and efficient cash management solutions, aligning with the evolving needs of its business customers.
As the transition unfolds, existing cardholders can expect continuity in their credit terms, while new offerings promise to deliver increased value and flexibility. This development underscores Amazon's ongoing efforts to adapt and innovate in response to market demands.
