Amazon (AMZN) Stock: New Business Credit Cards Launch With U.S. Bank and Mastercard

TLDR

• Amazon is dropping its eight-year partnership with American Express for small business credit cards
• Two new cards are launching this spring: one for Prime members (5% back on Amazon) and one for non-Prime (3% back)
• U.S. Bank will issue the cards on the Mastercard network, with the transition completing August 14
• Neither card carries an annual fee; existing credit limits and rates stay the same
• Amazon Business reported over $35 billion in annualized gross sales and serves more than 8 million organizations globally

Amazon (AMZN) stock was trading up 3.64% at time of publication.

Amazon.com, Inc., AMZN

Amazon has ended its small business credit card partnership with American Express after eight years, choosing U.S. Bank and Mastercard as its new partners for two relaunched cards aimed at small business owners.

The announcement was made Tuesday in a press release. The transition from Amex to U.S. Bank is set to complete on August 14.

The new Prime Business Card will give Prime members 5% back on Amazon purchases. The Amazon Business Card, for those without a Prime membership, will offer 3% back on Amazon buys.

Both cards earn rewards on purchases made outside Amazon too. After hitting $150,000 in combined annual net purchases, cardholders earn 1% back in those reward categories.

Neither card charges an annual fee. Existing cardholders keep their current credit limits and interest rates through the switch.

The cards will also include spend management tools for small business customers. Amazon said more benefits will be announced in the coming months.

Why U.S. Bank?

Minneapolis-based U.S. Bank is part of U.S. Bancorp and serves roughly 1.4 million small business clients. It’s one of the largest card issuers in the country.

Courtney Kelso, U.S. Bank’s senior executive vice president of payments, said the bank plans to offer Amazon’s small business customers additional U.S. Bank services in the future — a cross-sell opportunity the bank is clearly keen on.

Mastercard’s network gives the cards acceptance at hundreds of millions of locations worldwide.

Amex, for its part, said the relationship with Amazon is “changing” but added that Amazon “remains an important partner.”

Amazon Business By the Numbers

Amazon Business launched in the U.S. in 2015 and now operates in 11 countries, including the UK, Germany, Japan, and India.

The unit reported over $35 billion in annualized gross sales and serves more than 8 million organizations globally.

Amazon’s total revenue over the last twelve months hit $716.9 billion, up 12.4% year over year.

On valuation, Amazon trades at a P/E ratio of 27.94 and has been flagged as potentially undervalued by InvestingPro analysis.

Analyst price targets currently range from $245 (Wolfe Research, Outperform) to $315 (Tigress Financial Partners, Buy). JPMorgan sits at $280, pointing to strong AWS demand.

Amazon recently secured a deal with Delta Air Lines to provide in-flight Wi-Fi via its Project Kuiper satellite service on 500 aircraft starting 2028.

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