U.S. Bank Scores Amazon Co-Brand Deal, Launching No-Annual-Fee Cards Packed With Rewards

Amazon is partnering with U.S. Bank and Mastercard to offer two new credit cards to small businesses, according to a U.S. Bank press release issued on March 31. The new offerings from Amazon allow business owners to earn rewards and includes features to help them manage their operations with greater efficiency.

The Prime Business Card provides Prime customers with 5% back when they use the card to make Amazon purchases. But cardholders don’t need to have a Prime membership to access financial rewards with the Amazon Business Card, which offers 3% back to cardholders who aren’t Prime members.

Amazon took what its customers are seeking in a payment instrument into account when designing the programs for its new products.

“Convenient, rewarding payment options start with listening to the customer,” Tai Koottatep, Director and General Manager of Worldwide B2B Payments & Lending at Amazon, said in the release. “Small businesses told us they wanted more ways to earn rewards wherever they shop and better tools to manage cash flow.”

To that end, both of the new cards offer more rewards to cardholders when they use them for non-Amazon purchases. Neither card charges cardholders an annual fee.

Amazon Business customers can use the new cards’ spend management tools to realize savings and streamline the purchasing process. U.S. Bank said more details on the benefits on the cards will be released soon.

Amazon’s arrangement with U.S. Bancorp and Mastercard replaces one the company had with American Express. 

In 2018, Amazon and American Express entered into an alliance that saw Amex issue a small business credit card for the leading online retailer, according to a Bloomberg report that called Amazon’s deal with U.S. Bank a loss for American Express.

Partnerships around co-branded cards can offer significant revenue opportunities for card issuers, especially when the other company in the arrangement is as prominent as Amazon. But not all such partnerships stand the test of time.

“From time to time, co-brand agreements are not renewed,” Julie Townsend, a spokesperson for American Express, said in a statement, Bloomberg reported. “While our existing co-brand relationship with Amazon is changing, Amazon remains an important partner, and we continue to work together to provide valuable offerings to our customers.”

U.S. Bank provides more than 1.4 million small business clients with financial solutions.

U.S. Bank provides financial solutions to more than 1.4 million small business clients. That number is likely to grow once the bank’s new partnership with Amazon progresses.

The financial institution is in a position to gain more recognition from businesses solely due to its union with Amazon, but U.S. Bank will further benefit from the partnership if it’s successful in cross-selling its products and services to more companies.

“We are excited to partner with Amazon and Mastercard to empower small businesses with meaningful rewards and easy-to-use tools to manage spending, and, in the near future offering these small businesses more value with additional U.S. Bank services,” Courtney Kelso, SEVP, Payments: Consumer and Small Business at U.S. Bank, said in the release.