Last month, American Express (AmEx) “won the right to issue a new credit card for Amazon.com Inc.’s small-business customers.” As it stands, AmEx will provide a credit card and line of credit while Amazon will provide “line-item detail on transactions AmEx corporate and purchasing-card customers make on the retailer’s website, giving shoppers more data to control their business purchases.” Details are light about the new credit card but we do know that it is set to be different than a change or reward card.
This has the potential to be a big win for small businesses within the Amazon platform as the company looks to increase small business selling through the portal. In addition to consumer led products, Amazon is looking to expand its offering to office supplies and factory parts.
The company currently offers Prime membership as a way to offer fast delivery to small firms. “For the past seven years, it’s used data from 2 million merchants to offer loans to small businesses, which use the credit to buy more inventory or expand their businesses with new products.”