KEY HIGHLIGHTS
- Amazon terminates its American Express partnership for business credit cards after nearly a decade of collaboration
- The e-commerce giant will introduce two redesigned cards this spring: a Prime version offering 5% cashback and a standard option with 3% rewards
- U.S. Bank takes over as card issuer, utilizing Mastercard’s payment network, with full migration scheduled for August 14
- Both offerings eliminate annual fees while maintaining existing cardholders’ credit limits and interest rates
- Amazon’s B2B division has achieved more than $35 billion in annualized sales, serving over 8 million business customers worldwide
Amazon (AMZN) stock experienced a 3.64% increase at the time of reporting.
The Seattle-based e-commerce powerhouse has terminated its business credit card collaboration with American Express following nearly eight years, selecting U.S. Bank and Mastercard as replacement partners for a pair of refreshed cards targeting small business customers.
The company revealed the strategic shift Tuesday through an official statement. The migration from American Express to U.S. Bank will reach completion by August 14.
Prime members will benefit from the new Prime Business Card, which delivers 5% cashback on Amazon transactions. Meanwhile, the Amazon Business Card caters to non-Prime members with 3% cashback on platform purchases.
Both products extend rewards beyond Amazon’s ecosystem. Once cardholders surpass $150,000 in combined yearly net spending, they receive 1% cashback across additional reward categories.
Annual fees are absent from both cards. Current cardholders will retain their established credit limits and APRs during the transition period.
“Our small business community expressed a clear desire for expanded reward opportunities across all shopping destinations and enhanced cash flow management capabilities,” stated Tai Koottatep, Amazon’s director and general manager of Worldwide B2B Payments & Lending.
The updated cards will feature enhanced spend management functionality designed specifically for small business users. Amazon indicated that further benefits will be revealed over the upcoming months.
The U.S. Bank Selection
U.S. Bank, headquartered in Minneapolis and operating under U.S. Bancorp, maintains relationships with approximately 1.4 million small business accounts. The institution ranks among America’s top card issuers.
Courtney Kelso, senior executive vice president of payments at U.S. Bank, indicated plans to extend additional banking services to Amazon’s small business clientele moving forward — representing a significant cross-selling prospect for the financial institution.
Mastercard’s extensive network provides card acceptance across hundreds of millions of merchant locations globally.
American Express acknowledged the partnership is “evolving” while emphasizing that Amazon “continues to be a valued partner.”
Amazon’s Business Division Performance
Amazon Business debuted domestically in 2015 and has since expanded operations to 11 nations, encompassing the United Kingdom, Germany, Japan, and India.
The division has surpassed $35 billion in annualized gross revenue and maintains relationships with over 8 million organizational clients across the globe.
Amazon’s consolidated revenue for 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 ratio of 27.94, with InvestingPro analysis suggesting possible undervaluation.
Wall Street analysts have established price targets spanning from $245 (Wolfe Research, Outperform rating) to $315 (Tigress Financial Partners, Buy rating). JPMorgan maintains a $280 target, citing robust AWS demand drivers.
The company recently finalized an agreement with Delta Air Lines to deliver onboard Wi-Fi connectivity through its Project Kuiper satellite constellation across 500 aircraft beginning in 2028.
