Amazon.com, San Francisco and Internet consumer-credit provider NextCard Inc., have crafted a strategic relationship to create customized credit card products for Amazon’s 13 million customers to use online and offline.
Under the terms of the agreement, NextCard–creator of the First True Internet Visa–will be the exclusive provider of a co-branded Amazon.com NextCard credit card. During the five-year term beginning in early 2000, the relationship is expected to generate $150 million in fees for Amazon.com as its growing customer base adopts the card.
The receivables generated from the Visa or MasterCard accounts, as well as the co-branded cardholder relationships, will be assets of NextBank, a wholly owned subsidiary of NextCard.
Amazon.com has also obtained a warrant to acquire up to 4.4 million shares of NextCard common stock, a stake of nearly 10%.
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