Amazon Chooses Underdog for Credit Card Program
We all knew this was bound to happen sooner or later ... Amazon.com is getting into the credit card business with their own version of a branded affinity card.
They have selected NextCard to handle the business. This move surprised some industry analysts because the online retailer did not select one of the more mainstream vendors like First USA or MBNA America, two of the heaviest players in the affinity credit card arena.
Currently, Amazon has more than 13 million customers, and plans to roll out the credit card program early next year. Because of the huge number of customers, it is estimated that NextCard will remit to Amazon $150 million in fees over the next five years based on new account sign-ups.
NextCard has about 134,000 accounts, so if just one percent of Amazon's customers open new accounts, NextCard will have doubled its customer base. Now that's eCommerce!
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.