Not satisfied with being the biggest online retailer on the planet, Amazon has its sights set on a new product for a new demographic: checking accounts for teens.
Sources speaking with Bloomberg say Amazon is in early talks with banks about offering a checking account-like product to those too young to open one at a traditional bank without their parents’ permission.
Amazon apparently plans to aim the accounts squarely at teens, having it appeal to that age group as well as people who don’t have a credit card. Amazon Alexa could also feature in the product, further appealing to teens who are growing up with voice assistants.
Amazon has already waded into the financial service waters with Amazon Cash, which lets shoppers add physical cash to their Amazon account by visiting brick-and-mortar stores.
The new checking account product would be more streamlined than this, and offer an alternative to those who don’t have bank accounts to begin with.
What are you buying?
One issue Amazon could run into is that teens prefer going to physical stores rather than shopping online. The age-old tradition of hanging out at the mall with your friends apparently hasn’t faded in the digital age.
An additional concern we see is the issue of privacy. Amazon would have access to a lot of personal information about young people before they turn 18, including, of course, their spending habits.
This would be good for Amazon’s business, but raises the question of how much information we turn over to tech companies in the name of convenience.
There’s no word yet on when Amazon’s checking accounts would go live, but we’ll keep you posted.