NextCard Inc., which issues credit cards meant to be used on the Internet, has signed a coveted cobranding deal with Amazon.com, which has 13 million customers.

The Amazon.com NextCard credit card will be available in early 2000, as either a Visa or a MasterCard. In the five years after the card is launched, NextCard will pay Amazon up to $150 million in fees for customer acquisition.

As part of the deal, Amazon has bought a warrant for a 9.9% stake in NextCard, or 4.4 million shares. The price tag is about $22.5 million, according to Jeremy Lent, founder and chief executive officer of NextCard.

"Amazon had the ability to work with whomever they wanted, and they chose us," Mr. Lent said.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.