This week, Google confirmed that it will soon offer checking accounts to its users. But one of the company’s biggest rivals—Amazon—doesn’t appear to be joining it with a similar product anytime soon.
After exploring a partnership with banks early last year to offer an Amazon-branded checking account, Amazon quietly scrapped those plans in their early stages, according to two people familiar with the matter. It told one of the banks, JPMorgan Chase, that it was doing so over concerns that it could become subject to banking regulations, according to one of those people. Amazon’s move, which hasn’t been previously reported, highlights how cautiously some giant tech companies are proceeding as they seek to offer more financial services, which can help them create more loyalty from, and provide valuable data about, customers.