Key Highlights
- Amazon terminates its eight-year collaboration with American Express for business credit card offerings
- Spring rollout planned for two cards: Prime version offers 5% cash back on Amazon purchases, non-Prime version provides 3%
- U.S. Bank selected as new card issuer utilizing Mastercard’s payment network, with full migration by August 14
- Both cards feature zero annual fees while maintaining existing credit limits and interest rates for current holders
- Amazon Business division has surpassed $35 billion in annual gross sales and supports over 8 million business customers worldwide
Amazon (AMZN) stock showed gains of 3.64% during trading at publication time.
Amazon has terminated its business credit card collaboration with American Express following an eight-year run, selecting U.S. Bank and Mastercard as replacement partners for a pair of redesigned cards targeting small business customers.
The company revealed the strategic shift Tuesday through an official statement. The complete migration from American Express to U.S. Bank is scheduled for completion by August 14.
The redesigned Prime Business Card will reward Prime subscribers with 5% cash back on Amazon transactions. The Amazon Business Card, designed for non-Prime users, will deliver 3% back on Amazon expenditures.
Both card options provide rewards on transactions made beyond Amazon’s ecosystem. Once cardholders surpass $150,000 in total annual net spending, they’ll receive 1% back across those reward tiers.
The cards come without annual fees attached. Current cardholders will retain their established credit lines and APRs during the transition period.
“Our small business community expressed a clear desire for expanded reward opportunities across all their shopping destinations and enhanced cash flow management capabilities,” stated Tai Koottatep, director and general manager of Worldwide B2B Payments & Lending at Amazon.
The card offerings will incorporate financial management resources specifically designed for small business users. Amazon indicated that additional perks will be revealed in upcoming months.
The Rationale Behind U.S. Bank Selection
U.S. Bank, headquartered in Minneapolis and operating under U.S. Bancorp, provides services to approximately 1.4 million small business accounts. The institution ranks among America’s top card issuers.
Courtney Kelso, serving as senior executive vice president of payments at U.S. Bank, revealed plans to extend additional U.S. Bank products and services to Amazon’s business clientele moving forward — representing a strategic cross-selling initiative the bank is actively pursuing.
Mastercard’s global infrastructure provides the cards with merchant acceptance spanning hundreds of millions of locations internationally.
American Express acknowledged the partnership is “evolving” while emphasizing that Amazon “continues to be a valued partner.”
Amazon Business Performance Metrics
Amazon Business debuted in the United States in 2015 and has since expanded operations to 11 nations, encompassing the UK, Germany, Japan, and India.
The business segment has achieved over $35 billion in annualized gross sales figures and caters to more than 8 million organizational clients around the globe.
Amazon’s aggregate revenue across the trailing twelve months reached $716.9 billion, representing a 12.4% increase year over year.
From a valuation perspective, Amazon maintains a P/E ratio of 27.94 and has received potentially undervalued ratings from InvestingPro’s analytical framework.
Current analyst price projections span from $245 (Wolfe Research, Outperform rating) to $315 (Tigress Financial Partners, Buy rating). JPMorgan maintains a $280 target, highlighting robust AWS growth momentum.
Amazon recently finalized an agreement with Delta Air Lines to supply in-flight connectivity through its Project Kuiper satellite infrastructure across 500 aircraft beginning in 2028.
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