Amazon.com, Inc. Prime Day has fizzled out with mixed reactions – the online retailer is laughing all the way to the bank, though – so now it’s time for the company to make headlines for different things. One of these is now the new Amazon Prime Store Card, a five percent cash-back credit card for Prime subscribers.
But did anyone know about this?
Amazon Launches Card in March, Marketing Gets Underway
Although Amazon released the credit card in March, it is only now beginning to get noticed by bloggers and shoppers. As of late, Amazon has started to release new promotions and marketing gimmicks to encourage consumers to sign up for the credit card with zero annual fee.
The interest rate is large: 25.99 percent.
In addition, cardholders can gain a number of promotional offers. For instance, shoppers can pay zero interest on charges of at least $149 if the balance is paid in full within six months after the purchase.
For the company, it’s a business decision that will likely lead to higher customer acquisition and retention rates as well as lower transaction fees.
With a new cash-back credit card, Amazon can attract new customers to its $99 per year Prime subscription program. Or, it can retain its current Prime userbase. Also, Amazon can save on transaction costs if its shoppers are using the Amazon card as opposed to a Visa or a MasterCard.
Most United States retailers pay between three and five percent for every credit card transaction. It may not seem like much at first, but compounded over time they can eat into any company’s profits.
It was also opined by some that this Prime card takes aim at Target Corp. . The REDcard offers clients five percent back each time they use it to purchase an item and they receive free shipping on Target.com purchases.
A spokesperson for the retailer even responded to Amazon’s credit card.
While others may try and replicate parts of this offering, we think REDcard paired with exclusive, only-at-Target merchandise and great prices on everyday essentials is an unbeatable value proposition.”
Amazon’s Move Into Credit Cards, Payments
Amazon has been rather active in the niche of payments in recent years.
In 2014, the company unveiled the Amazon Local Register, a credit-card processing device and mobile app. This has been developed to help small businesses accept payments from smartphones and tablets. The move places Amazon in direct competition with Square, PayPal Holdings and Intuit Inc. .
This isn’t the first type of credit card that can help you save money on Amazon purchase. There are quite a few of them: the Amazon.com Rewards Visa Card from Chase, Sallie Mae MasterCard from BarclayCard, Blue Cash Preferred Card from American Express and SimplyCash Business Card From American Express.
During the Wednesday trading session, Amazon traded in positive territory up 0.05 percent at 488.13.