Helping customers build an attractive credit profile
Amazon (AMZN) has launched a credit program for people who would otherwise not qualify for a credit card. The Amazon Credit Builder program will allow people who join to build a credit profile that can qualify them for a regular credit card and unlock their potential as Amazon shoppers. Amazon is undertaking the credit building program in partnership with Synchrony Financial (SYF), the financial services company that last year bought PayPal’s (PYPL) consumer loans business in the United States.
The credit building program could help Amazon build a larger base of highly loyal customers.
Making Amazon shopping more accessible
The credit building program is yet another attempt by Amazon to make its retail services accessible to more consumers. The company has created special Prime membership plans for students and people on government assistance, enabling them to enjoy exclusive discounts when they shop on its marketplace.
Amid tightening competition for online shoppers, e-commerce companies like Amazon are trying new ways to attract new customers and improve loyalty among their existing customers. Amazon doesn’t regularly update investors on the size of its customer base, but it said in 2017 that it serves more than 300 million consumers globally. Alibaba (BABA), JD.com (JD), and eBay (EBAY) finished the first quarter with 654 million, 310.5 million, and 180 million active consumers on their platforms, respectively.