Reward cards are all the rage these days.
As Apple prepares to launch his exclusive credit card in partnership with Goldman Sachs, Amazon is embarking on a more populist path.
The e-commerce company just announced that it will launch a new Amazon credit card for its underbanked customers, especially those with poor or bad credit. The new product will be branded as part of its “Amazon Credit Builder” program, according to a CNBC report.
Synchrony Financial, the bank behind Amazon’s already popular rewards card, will also spearhead this new initiative. And like the multitude of existing Amazon branded credit cards, this version will also offer rewards for members, such as Amazon’s popular five percent cash back on Prime purchases and a $ 40 Amazon gift card. $.
“There will always be people we can’t give credit to – this is a large population that we couldn’t reach,” said Tom Quindlen, executive vice president of retail cards at Synchrony. “It’s a new market segment.
The way “credit” works on the card is similar to other popular security cards, which banks typically offer to young customers or new credit card holders. In order to receive a credit limit, customers will need to make that exact amount, between $ 100 and $ 1,000, as a deposit. “It’s putting credit in people’s hands in a responsible way,” Quindlen said.
The credit builder will then offer customers higher levels of credit cards, based on their creditworthiness gained through the use of the Amazon card.
The debut of the card comes during a busy period of new releases of Amazon products. The company unveiled its Long-awaited Prime Air electric drones last week, which he plans to use for deliveries of packages under five pounds in less than 30 minutes. It is also in the process of offering Prime one-day delivery in the coming months, an initiative it has announced. earlier this year.
The “The Amazon Credit Builder program is currently available to apply via the Amazon website.