Amazon Partners with U.S. Bank and Mastercard for New Small Business Credit Cards

Amazon announced on May 13 that it is launching a new suite of credit cards for small businesses, partnering with U.S. Bank as the issuer and Mastercard as the exclusive network. The move marks a significant shift away from the company's long-standing partnership with American Express for its small business co-branded cards. The new offerings, set to launch this spring, include the Prime Business Card and the Amazon Business Card. The Prime Business Card will offer Prime members 5% back on purchases made on Amazon, while the Amazon Business Card will provide a 3% reward for customers without a Prime membership. According to the announcement, both cards will feature no annual fee, flexible credit terms, and rewards on purchases made outside of Amazon. Further details on the full range of benefits are expected in the coming months. This strategic change is a direct response to feedback from small business customers, according to Amazon. “Small businesses told us they wanted more ways to earn rewards wherever they shop and better tools to manage cash flow,” said Tai Koottatep, director and general manager of Worldwide B2B Payments & Lending at Amazon. “We partnered with U.S. Bank and Mastercard to build a card program that delivers exactly that.” The new cards are designed to integrate seamlessly with the Amazon Business platform, which provides tools for purchasing and spend management. Amazon Business offers features like business-only pricing, multi-user accounts, approval workflows, and tax-exempt purchasing for qualified organizations. By aligning the credit card with these tools, Amazon aims to streamline the procurement process and provide businesses with greater control and insight into their spending. For the millions of current U.S. Amazon Business and Amazon Business Prime American Express Card Members, the transition will be a managed process. The companies have stated that existing cardholders can continue to use their American Express-branded cards and earn rewards as usual for the time being. Both American Express and U.S. Bank will send communications to these customers detailing the transition timeline and specifics about the new card offerings. The partnership brings together three major players in their respective fields. U.S. Bank is one of the largest card issuers in the country and serves more than 1.4 million small business clients. “We're incredibly proud of our reputation as a top bank for small business owners,” said Courtney Kelso, senior executive vice president at U.S. Bank. “We are excited to partner with Amazon and Mastercard to empower small businesses with meaningful rewards and easy-to-use tools to manage spending.” Mastercard's involvement provides global acceptance and a network known for its security and data-driven insights tailored to entrepreneurs. The move to Mastercard from American Express expands the potential acceptance of the co-branded card at millions of locations worldwide, a key consideration for businesses with diverse spending needs beyond the Amazon ecosystem. The introduction of these cards intensifies competition in the small business credit market. By offering a high rewards rate on its own platform, Amazon is creating a powerful incentive for the millions of businesses that rely on its marketplace for supplies, equipment, and inventory to deepen their financial relationship with the company. The shift also reflects a broader trend of large technology and e-commerce platforms embedding financial services directly into their ecosystems to increase customer loyalty and capture more value. While a high-yield rewards card tied to a primary vendor is undeniably attractive, we advise clients to look at the bigger picture. It is easy to be swayed by a 5% cash-back offer, but this can inadvertently create vendor lock-in, discouraging the search for better pricing or more favorable terms from other suppliers. Over-reliance on a single rewards program can mask inefficiencies in a company's overall procurement strategy. A credit card is a tool for managing short-term cash flow, not a substitute for a comprehensive financial plan. In our experience, the most successful businesses use credit strategically as one component of a broader approach to funding operations and growth. C&S Finance Group LLC helps clients with capital raising and investor strategy, ensuring that financing decisions support long-term objectives rather than just short-term rewards. To build a resilient capital plan for your business, contact us at csfinancegroup.com. Moving forward, small business owners and existing cardholders should monitor communications from Amazon, U.S. Bank, and American Express. The forthcoming announcements will be critical for understanding the full suite of benefits, the specific details of the flexible credit terms, and the exact timeline for the transition to the new U.S. Bank-issued Mastercards.