Key Highlights
- The e-commerce giant is terminating its eight-year relationship with American Express for its small business credit card offerings
- Spring 2025 will see the debut of two new business cards: Prime members receive 5% cashback on Amazon purchases, while non-Prime users get 3%
- The cards will be issued by U.S. Bank utilizing the Mastercard payment network, with full migration scheduled for August 14
- Both offerings come with no annual fees; current cardholders will maintain their existing credit limits and interest rates
- The company’s B2B division has generated more than $35 billion in annualized gross revenue and caters to over 8 million business entities worldwide
At the time of writing, Amazon (AMZN) stock showed gains of 3.64%.
The Seattle-based e-commerce powerhouse has terminated its small business credit card collaboration with American Express following an eight-year run, selecting U.S. Bank and Mastercard as replacement partners for its reimagined business card lineup targeting entrepreneurs and small business proprietors.
The company revealed the news Tuesday through an official press statement. The full migration away from Amex to U.S. Bank is scheduled to conclude by August 14.
Prime members will benefit from the new Prime Business Card, which delivers 5% cashback on Amazon transactions. Meanwhile, the Amazon Business Card caters to non-Prime subscribers with 3% returns on Amazon expenditures.
Both card products also generate rewards on transactions conducted beyond Amazon’s marketplace. Once cardholders surpass $150,000 in combined yearly net purchases, they’ll receive 1% back across those reward tiers.
No annual fees apply to either card option. Current cardholders will retain their established credit limits and APRs during the conversion process.
“Our small business customers expressed a desire for expanded reward opportunities regardless of where they make purchases and superior cash flow management capabilities,” stated Tai Koottatep, who serves as Amazon’s director and general manager of Worldwide B2B Payments & Lending.
The new card lineup will feature integrated spend management capabilities designed specifically for small business users. The company indicated that additional perks will be revealed in upcoming months.
The U.S. Bank Selection Explained
Headquartered in Minneapolis, U.S. Bank operates as a division of U.S. Bancorp and maintains relationships with approximately 1.4 million small business accounts. 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 U.S. Bank products to Amazon’s small business clientele down the road — representing a strategic cross-selling initiative the bank is actively pursuing.
The Mastercard payment infrastructure provides the cards with merchant acceptance spanning hundreds of millions of establishments across the globe.
American Express acknowledged the partnership with Amazon is “evolving” while emphasizing that Amazon “continues to be a valued partner.”
Amazon’s B2B Division Performance Metrics
Amazon Business made its U.S. debut in 2015 and has since expanded operations to 11 nations, encompassing markets like the UK, Germany, Japan, and India.
The division has surpassed $35 billion in annualized gross revenue and maintains relationships with over 8 million business organizations on a global scale.
The company’s aggregate revenue across the trailing twelve months reached $716.9 billion, representing a 12.4% year-over-year increase.
From a valuation perspective, Amazon currently carries a P/E multiple of 27.94 and has been identified as potentially undervalued according to InvestingPro’s assessment.
Wall Street analyst price projections currently span from $245 (Wolfe Research, Outperform rating) to $315 (Tigress Financial Partners, Buy rating). JPMorgan maintains a $280 target, citing robust AWS demand drivers.
The company recently finalized an agreement with Delta Air Lines to supply onboard Wi-Fi connectivity through its Project Kuiper satellite platform across 500 planes beginning in 2028.
