Quick Summary
- Amazon terminates its American Express partnership for small business credit cards after nearly a decade of collaboration
- The company will introduce two new business cards this spring: a Prime member card offering 5% cash back and a standard card with 3% rewards on Amazon purchases
- U.S. Bank takes over as card issuer on the Mastercard platform, with full migration scheduled for August 14
- Both new offerings eliminate annual fees while preserving existing cardholders’ credit limits and interest rates
- Amazon’s B2B division generated more than $35 billion in annual gross sales and supports over 8 million business customers worldwide
Shares of Amazon (AMZN) were up 3.64% during trading at the time this article was published.
In a significant shift for its business services division, Amazon has terminated its nearly decade-long small business credit card collaboration with American Express, selecting U.S. Bank and Mastercard to power two newly designed cards targeting entrepreneurial customers.
The e-commerce giant revealed the partnership change in a Tuesday press statement. The complete migration from American Express to U.S. Bank will conclude by August 14.
Prime members will benefit from the new Prime Business Card, which delivers 5% cash back on all Amazon transactions. Meanwhile, the Amazon Business Card caters to non-Prime customers with 3% back on purchases from the marketplace.
Both card products extend rewards beyond Amazon’s ecosystem. Once cardholders surpass $150,000 in combined annual net spending, they unlock 1% cash back in additional reward categories.
The new cards come without annual fees. Current cardholders will maintain their existing credit lines and APR rates throughout the transition period.
“Small businesses communicated their desire for expanded reward earning opportunities across all shopping channels and enhanced cash flow management capabilities,” stated Tai Koottatep, Amazon’s director and general manager of Worldwide B2B Payments & Lending.
Amazon emphasized that the cards will feature expense management functionality designed specifically for small business operations. The company indicated that additional perks will be revealed over the upcoming months.
The U.S. Bank Selection
Headquartered in Minneapolis, U.S. Bank operates under U.S. Bancorp’s umbrella and maintains relationships with approximately 1.4 million small business accounts. The institution ranks among America’s top credit card issuers.
Courtney Kelso, who holds the position of senior executive vice president of payments at U.S. Bank, indicated the institution intends to present Amazon’s small business clientele with supplementary U.S. Bank products moving forward — representing a strategic cross-selling initiative the bank appears eager to pursue.
The Mastercard infrastructure provides card acceptance across hundreds of millions of merchant locations throughout the globe.
American Express acknowledged the partnership is “evolving” while emphasizing that Amazon “continues to be a valued partner.”
Amazon’s B2B Division Performance Metrics
Amazon Business debuted in the United States in 2015 and has since expanded operations to 11 nations, encompassing markets like the United Kingdom, Germany, Japan, and India.
The business segment recorded annual gross sales exceeding $35 billion and maintains relationships with more than 8 million organizational clients across the globe.
Amazon’s aggregate revenue over the trailing twelve-month period reached $716.9 billion, representing a 12.4% year-over-year increase.
From a valuation perspective, Amazon currently trades at a price-to-earnings multiple of 27.94 and has been identified as potentially undervalued according to InvestingPro’s assessment.
Wall Street analyst price projections currently span from $245 (Wolfe Research, Outperform rating) to $315 (Tigress Financial Partners, Buy rating). JPMorgan maintains a $280 target, citing robust AWS momentum.
In related developments, Amazon recently finalized an agreement with Delta Air Lines to deliver in-flight internet connectivity through its Project Kuiper satellite technology across 500 aircraft beginning in 2028.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
