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Amazon.com Inc. is significantly enhancing its business credit card program, transitioning new applicants to a new suite of cards issued by U.S. Bank and powered by Mastercard. This strategic shift introduces a range of expanded rewards, flexible financing options, and advanced spend management tools designed to cater to the evolving needs of business buyers. The new Prime Business Card and Amazon Business Card, launched on May 13, mark a departure from the retailer’s previous long-standing partnership with American Express, which had issued Amazon’s business cards since 2018.
This move underscores Amazon’s continuous effort to deepen the value proposition of its Amazon Business B2B marketplace by integrating purchasing, payment, and spend control functionalities more cohesively. Amazon, a dominant force in e-commerce, currently holds the No. 1 position in Digital Commerce 360’s Top 2000 Database, a benchmark for the largest North American online retailers by annual e-commerce sales. Furthermore, it ranks third in Digital Commerce 360’s Global Online Marketplaces Database, which tracks the largest marketplaces by third-party gross merchandise value (GMV).
The revamped card program addresses direct feedback from Amazon’s business clientele, who have expressed a clear demand for enhanced rewards beyond the Amazon ecosystem, greater payment flexibility, and more robust tools for managing team spending. Shelley Salomon, vice president of Amazon Business, highlighted these customer insights as the driving force behind the new card offerings. “We heard from business customers that they wanted more rewards outside of Amazon, more flexibility in how they pay, and more control over how their teams spend,” Salomon stated. The new cards are engineered to fulfill these requirements, offering rewards that dynamically adjust to individual spending patterns, interest-free installment plans, and integrated spend management features.
Enhanced Rewards Structure: Balancing Amazon Ecosystem Benefits with Broad Spending Appreciation
A cornerstone of the new card program is its multifaceted rewards structure, designed to incentivize spending both within and outside the Amazon platform. For Prime members, the Prime Business Card offers a substantial 5% back on eligible U.S. purchases across Amazon Business, Amazon.com, Amazon Web Services (AWS), and Whole Foods Market, capped at $150,000 in annual spending. This significant cashback rate aims to solidify Amazon’s position as a primary purchasing hub for businesses.
For businesses that do not maintain a Prime membership, the Amazon Business Card provides a 3% cashback rate on eligible U.S. Amazon purchases, also subject to the same $150,000 annual spending cap. Both cards are positioned as attractive options due to their absence of annual fees and foreign transaction fees, further reducing the cost of doing business for cardholders.
Crucially, Amazon is extending its reward benefits beyond its own sales channels. Cardholders will automatically earn 2% cashback on their top three eligible spending categories each statement cycle for purchases made outside of Amazon, up to an annual limit of $150,000. All other non-Amazon purchases will accrue a 1% cashback rate. This blended approach acknowledges that businesses incur expenses across a wide array of vendors and services, and aims to provide a more comprehensive reward proposition.
Travel spending is also integrated into the rewards framework. Prime Business Card holders can earn 5% cashback on travel booked through the U.S. Bank Travel Center, while Amazon Business Card holders will receive 3% cashback on such bookings. This feature adds a valuable perk for businesses with frequent travel needs.
Financing and Spend Management Tools: Empowering Financial Control
Beyond the allure of enhanced rewards, Amazon has significantly bolstered the financing and spend management capabilities of its business cards. Recognizing the critical need for businesses to manage cash flow and expenditures effectively, the new cards introduce features designed for greater financial agility and control.
A key financing innovation is the option to split eligible Amazon purchases into fixed monthly payments with a 0% Annual Percentage Rate (APR) for up to 12 months. This “buy now, pay later” style offering can be instrumental for businesses managing large inventory purchases or capital expenditures, providing a period of interest-free repayment. However, it is important to note that purchases made using this installment option will not accrue rewards, a trade-off that cardholders will need to consider.
The cards are deeply integrated with Amazon Business tools and U.S. Bank Spend Management platforms, creating a unified dashboard for financial oversight. This integration allows businesses to track spending in real-time, access detailed reports with specific Amazon transaction information, establish spending limits for different team members or projects, and issue an unlimited number of virtual cards. These virtual cards offer granular control, allowing businesses to set specific spend restrictions and expiration dates, thereby mitigating the risk of unauthorized or excessive spending.
Mastercard’s involvement ensures robust security features are embedded within the cards. These include AI-powered fraud monitoring, Zero Liability protection, tokenization for secure transactions, and advanced cybersecurity tools. With acceptance at over 100 million locations globally, the cards offer broad utility for businesses operating domestically and internationally.
Transition and Strategic Alignment: A New Chapter for Amazon and U.S. Bank
The transition for existing Amazon Business American Express cardholders will be managed to ensure continuity. These customers can continue to utilize their current cards and accrue rewards during the transition period. They will receive replacement cards by August 14, with their accumulated rewards seamlessly transferred to the new U.S. Bank-issued cards.
This issuer switch represents a significant strategic move for U.S. Bank, substantially expanding its footprint in Amazon’s small business payment ecosystem. U.S. Bank, which serves over 1.4 million small business clients, views this partnership as an opportunity to introduce a broader spectrum of financial services tailored to this segment. An earlier announcement regarding the transition emphasized the bank’s commitment to leveraging this collaboration to innovate and enhance offerings for its small business customers over time.
Amazon Business: A Thriving Ecosystem of Services
The introduction of these enhanced credit cards is occurring against the backdrop of Amazon Business’s rapid growth and expansion of its service offerings. The B2B marketplace has become a formidable platform, generating over $35 billion in annualized gross sales and serving more than 8 million organizations worldwide, including 97% of Fortune 100 companies. This scale highlights Amazon’s commitment to dominating the B2B e-commerce landscape.
Recent innovations further underscore this commitment. Shortly after announcing the new credit cards, Amazon unveiled new conversational capabilities for its Amazon Business Assistant. This AI-powered assistant now guides business and procurement teams through complex processes such as tax-exempt purchasing, approval workflows, spend control management, order visibility, and the monitoring of spending anomalies. The integration of Alexa for Shopping, Amazon’s AI agent, into the Amazon Business platform also provides business customers with a more intuitive and efficient browsing and purchasing experience.
In early May, Amazon Business enhanced its logistics by introducing same-day delivery of fresh groceries to businesses across more than 2,300 U.S. cities and towns. This expansion allows business customers to seamlessly order perishable items like produce, dairy, and baked goods alongside traditional office supplies and other essential business products, reflecting a holistic approach to meeting diverse business needs.
The strategic pivot to U.S. Bank and Mastercard for its business credit card program, coupled with continuous innovation in its B2B marketplace and supporting services, signals Amazon’s aggressive strategy to capture a larger share of the business-to-business commerce market. The new cards are not just payment instruments but integral components of a broader ecosystem designed to streamline operations, reduce costs, and provide valuable financial tools for businesses of all sizes.
