Amazon has just announced a significant shift in its small-business credit card strategy, forging a new partnership with U.S. Bank and Mastercard.
The company is replacing its American Express co-branded card with two new offerings: the Prime Business Card, offering 5% back for Prime members, and the Amazon Business Card, providing 3% back for non-Prime members. U.S. Bank will serve as the new issuer, and the cards will operate on the Mastercard network, with a launch planned for as early as late spring.
This move is a strategic win for all three companies. First, for Amazon, it's a way to deepen its relationship with its massive base of over 8 million business customers. By offering richer rewards and better-integrated financial tools, Amazon can increase loyalty and capture a larger share of its customers' spending. Second, for U.S. Bank, this is a major opportunity to scale its operations by gaining access to Amazon's vast small-business ecosystem. It aligns perfectly with their stated focus on growing their SMB payments business. Finally, for Mastercard, the deal shifts significant transaction volume away from its rival, American Express, and solidifies its position as a go-to network for business-to-business (B2B) payments.
This partnership didn't happen overnight; it's the result of months of preparation. We saw clues leading up to this. U.S. Bank has been actively launching new products for small businesses, like its Business Shield card, signaling its capabilities. Meanwhile, Mastercard has been consistently rolling out new technologies and programs aimed at the SMB market, making its network more attractive. Amazon itself has been enhancing its Business Prime benefits, setting the stage for a more robust, integrated payment solution.
The financial implications are substantial. Amazon Business generated over $35 billion in sales in 2024. If even a small fraction of that spending—say, 8% to 20%—moves to these new cards, it translates into billions in transaction volume. This would generate tens of millions of dollars in annual revenue for U.S. Bank from interchange fees and a meaningful contribution for Mastercard from network fees.
In essence, this strategic pivot allows Amazon to offer a more compelling product to its business customers. At the same time, it provides U.S. Bank with a powerful growth engine and strengthens Mastercard's footprint in the competitive commercial payments landscape.
Glossary:
- Co-brand credit card: A credit card offered by a bank in partnership with a retail brand, featuring benefits specific to that brand.
- Issuer: The bank or financial institution that extends credit to the cardholder and manages the account (in this case, U.S. Bank).
- Interchange fee: A fee paid by a merchant's bank to the cardholder's bank for every transaction, representing a key revenue stream for the issuer.