Amazon Launches Secured Credit Card For The ‘Underbanked’ with Bad Credit

Amazon (NASDAQ: AMZN)  has partnered with Synchrony Financial to create ac credit card for those who might not have good enough credit to get a traditional credit card with Amazon. The new rewards credit card will be available to a whole demographic of people that either have no credit, bad credit, or who would otherwise be in-eligible for Amazon’s traditional loyalty cards.

“There’s always going to be people that we can’t give credit to — this is a large population that we weren’t able to reach,” Tom Quindlen, Synchrony executive vice president and CEO of the bank’s retail card operation, told CNBC in a phone interview. “It’s a new segment of the market.”

Tom Quindlen, Synchrony Executive Vice President and CEO of the bank’s retail card operation told CNBC in a phone interview, “There’s always going to be people that we can’t give credit to — this is a large population that we weren’t able to reach. It’s a new segment of the market.”

The card also offers perks to cardholders, such as 5% cash back on purchases made on Amazon which is a similar rewards structure of Amazon’s store card which is also through Synchrony. These types of rewards can encourage more spending which then drives more loyalty within the customer base, said Quindlen.