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!