AmazonHas chosen to renew an agreement allowing JPMorgan ChaseCNBC reports that tech giants have agreed to the issue of their flagship rewards credit cards, ending long negotiations.

Amazon Prime Rewards cardThis was one of the most sought-after co-brand deals in the sector, and a rarity because of Amazon’s massive loyalty program. Its estimated value is approximately 150 millionPeople with information about the talks claim that U.S. members are represented.

Since it was a small online bookeller, JPMorgan issued Amazon’s cards. two decades agoAmazon didn’t cease soliciting bids to take over the bank by mid-2021. American Express, SynchronyAnd Citigroupwere involved in the discussions. MastercardHad hoped to replace VisaAs a payments network,” said one person, declining to identify themselves in private conversations about the process.

One of the individuals said that this was an opportunity once in a lifetime to enter Amazon and make a difference with your card business.  If Chase loses it, it will be heard all over the payments industry. Every winner gains instant credibility, and Wall Street will be proud of their achievement.

Amazon and other popular brands offer credit card offers. CostcoAnd American AirlinesThey are among the most contested financial contracts. Because they give banks instant access to millions of customers, who are loyal and spend billions each year, this is why they have become so popular. A significant share of an issuer’s revenue can be attained from the largest pacts. American Express saw its business shrink by 10% due to these pacts. circulationCitigroup won the bid2015 Costco card

Banks are so dependent on card transactions that JPMorgan CEOs have made it a point to mention them. Jamie DimonCitigroup and its subsidiaries Jane FraserThe people claimed that the individuals are involved in hashing out transactions.

JPMorgan was quoted as saying that the Amazon Card should be discussed. could walk awayBloomberg reported June that the bank would end its two-decade-old partnership and sell its loan portfolio. According to sources, the total amount of loans made by Amazon Prime customers at Chase bank is approximately $20 billion. This would require millions of people to switch banks and ensure their cards work perfectly.

That may have been a negotiating tactic on the part of JPMorgan, because while Amazon experienced torrid growth during the pandemic as people were forced to stay home, other segments that Chase cards are known for — hotels, restaurants and entertainment — declined sharply. This made Amazon an even greater asset for the largest U.S. bank in terms of assets.

Although they are vital for American banks as well as American consumers, the fact that they have been obsessedTo maximize rewards card points, contracts are secretly kept. One of the sources said that Amazon demanded participants sign non-disclosure agreements. It also ran its RFP (request for proposal) for the deal.

Amazon is known for pushing issuers into accepting their terms. According to the people, this meant that card holders could keep the 5% Amazon.com/Whole Foods rewards rate, but they also had to contribute a part of their bank revenue, such as loans and a rebate of some interchange fees.

Amazon ultimately chose to continue with JPMorgan and Visa. This corporate relationship dates back to 2002 when Bank One, a Chicago-based lender led by Jamie Dimon (at the time), first appeared. signed upThis promising company was offered a deal on a new card. JPMorgan acquired Bank One two years later.

Dimon and Jeff Bezos have a personal connection that goes back further than Amazon’s early days. Dimon claimed that he has even gotten to know Jeff Bezos. briefly entertainedBefore joining Amazon, he was working at Bank One. Haven was formed by the three leaders of Berkshire Hathaway and is aimed at disrupting American health care. disbanding the effortIn 2021.

This deal will not affect Amazon Prime Rewards Visa Signature Card users. Prime members will still earn 5% back on Amazon.com and Whole Foods purchases — a top rate among rewards cards — as well as 2% at restaurants, gas stations and drugstores, and 1% elsewhere.

CNBC was briefed by Max Bardon as Amazon vice president. Bardon stated that they look forward to working with Chase to provide seamless benefits-added payment options to Amazon customers.

JPMorgan, on the other hand, highlighted its “multiyear” deal with Amazon and declared that it is “incredibly proud” about its relationship.

“Looking to the future, we’re excited to continue delivering new features for this product that delight card members,” said Chase co-CEO Marianne Lake.