Amazon has partnered with Synchrony Bank to release a secured credit card that allows people to put down a security deposit and get a credit card with a limit of that amount. Cardholders who are Prime members can get 5% back on their Amazon purchases.
The move shows how Amazon is trying to expand its customer base to a segment of buyers: those with bad credit. Many banks offer secured credit cards, but Amazon’s is offering incentives such as cash back and financing options so users can pay for Amazon purchases in installments with no interest. Amazon is also offering tools such as fraud alerts and access to credit score updates.
Amazon has said publicly it has more than 100 million Prime members worldwide. Some estimates project it has more than 101 million in the U.S. alone, and nearly half of U.S. households. These kinds of initiatives show an effort to grab the remaining holdouts.