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.