Quick Summary
- The e-commerce giant is terminating its American Express partnership for small business cards after an eight-year collaboration
- Spring 2025 will see the debut of two business cards: Prime members earn 5% cashback on Amazon purchases, while non-Prime members receive 3%
- Mastercard network and U.S. Bank will handle card issuance, with full migration scheduled for August 14
- Annual fees are eliminated on both offerings; current cardholders retain existing credit limits and interest rates
- The Amazon Business division has generated more than $35 billion in annual gross sales and caters to over 8 million organizations worldwide
Amazon (AMZN) stock experienced a 3.64% increase at the time of this writing.
The Seattle-based retail giant has severed its small business credit card collaboration with American Express following eight years of partnership, selecting U.S. Bank and Mastercard to power two redesigned cards targeting small business proprietors.
Tuesday’s press release detailed the shift. The complete migration from American Express to U.S. Bank will conclude by August 14.
Prime Business Card holders will receive 5% cashback on all Amazon transactions. The Amazon Business Card, designed for customers without Prime subscriptions, delivers 3% cashback on platform purchases.
Both card options provide rewards for transactions outside the Amazon ecosystem. Once cardholders surpass $150,000 in combined annual net spending, they unlock 1% cashback in additional reward categories.
Annual fees have been waived for both products. Current cardholders will maintain their established credit limits and APRs during the transition period.
“Our small business customers expressed clear demand 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.
Advanced spend management features will accompany the new cards for business customers. The company indicated that additional perks will be revealed in 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 customers. The institution ranks among America’s top card issuers.
Courtney Kelso, who holds the position of senior executive vice president of payments at U.S. Bank, revealed plans to extend additional banking services to Amazon’s small business clientele moving forward — representing a significant cross-selling avenue the bank intends to pursue.
Mastercard’s global payment network enables card acceptance at hundreds of millions of merchant locations across the globe.
American Express acknowledged the partnership is “evolving” while emphasizing that Amazon “continues to be a valued partner.”
Amazon Business Performance Metrics
The Amazon Business platform debuted in 2015 within the United States and has since expanded operations to 11 countries, encompassing the United Kingdom, Germany, Japan, and India.
This business segment has surpassed $35 billion in annualized gross sales while providing services to more than 8 million organizations internationally.
Amazon’s consolidated revenue for the trailing twelve months reached $716.9 billion, representing a 12.4% year-over-year expansion.
From a valuation perspective, Amazon maintains a P/E ratio of 27.94 and has received an undervalued designation from InvestingPro’s analytical framework.
Wall Street analyst price targets currently span from $245 (Wolfe Research, Outperform rating) to $315 (Tigress Financial Partners, Buy rating). JPMorgan has established a $280 target, citing robust AWS demand drivers.
Recent developments include Amazon’s agreement with Delta Air Lines to deliver in-flight Wi-Fi connectivity through its Project Kuiper satellite constellation across 500 aircraft beginning in 2028.
