Amazon.com, Inc. (NASDAQ:AMZN) Renews Co-Branded Card Deal With JPMorgan Chase & Co. (NYSE:JPM)
Amazon.com, Inc. (NASDAQ:AMZN) has renewed its card relationship with JPMorgan Chase & Co. (NYSE:JPM), as firms in the industry rush to seek retail card companies to team up with.
Amazon and Chase have been partners for a long time and their relationship saw the introduction of Amazon branded credit cards that operate under the Visa Inc (NYSE:V) network. The cards made their debut in 2002.
Neither of the two firms has disclosed financial details of the renewed contract. Sources familiar with the matter claim that there was another card company that wanted to get in on the action, though they did not disclose the name of the third party.
Retail card partnerships such as that of Amazon and Chase have earned the title of co-brand relationships. Such relationships are of particular importance to card issuers because they attract credit-worthy and loyal customers. They often offer special advantages and rewards to retailers and clients, thus providing an incentive to customers seeking such card services.
These cards can also be used by merchants. They are also a great avenue to gear up for future changes such as the current mobile payments trend.
Amazon also is also handing out free card readers made by Square to businesses that had previously purchased the online retailer’s version of the card reader called Amazon Local Register.
The new card readers cost $10 and are the company’s replacement for the previous card swiping device that connects to tablets and iPhones. Amazon has introduced the offer just three months after announcing the discontinuation of the Amazon Local Register at the beginning of February. The company sent emails to the ALR customers last week to inform them of the promotion code and the offer.
A spokesperson from Square revealed that the two companies have teamed up on the offer. She also joked that the only way that it would have worked out better is if Amazon delivered the Square readers to customers using Amazon drone delivery services.