Santander Close to Striking a Major Deal with Amazon for Consumer Finance in Europe
Just days after reaching an agreement with Apple, Santander is now in talks with Amazon to offer consumer finance across Europe. This move is part of Santander's strategy to collaborate with major global tech companies, as outlined in their latest annual report.
Advanced Negotiations
Banco Santander SA is on the brink of finalizing a deal with Amazon.com Inc. If things go as planned, the Spanish bank will offer financing options to customers shopping on Amazon in Europe. Initially, the consumer finance partnership will begin in Germany and then expand to other European countries.
Strategy for Growth
Santander aims to boost its digital consumer finance business, which made up about 10% of its total revenue last year. The bank's strategy involves signing flagship deals with big tech companies to provide consumer loans during online checkouts. This allows buyers to get a loan to pay for their purchases directly on the retailer's website.
Benefits for Both Parties
These partnerships benefit both the bank and the retailers. For Santander, it creates a direct sales channel. For Amazon, it allows customers to make purchases they might not afford otherwise.
Previous Deal with Apple
Last week, Santander signed a similar deal with Apple Inc to offer digital consumer finance in Germany. However, insiders believe the partnership with Amazon will be even more lucrative.
Neither Santander nor Amazon has commented on the ongoing negotiations.
In summary, Santander's ambitious move to partner with tech giants like Amazon and Apple highlights its commitment to growing its digital finance business and enhancing customer purchasing power.
Examples: Imagine you’re buying a new smartphone on Amazon, and at checkout, you get an offer to pay in installments through Santander. This makes the purchase more affordable and convenient for you.
