Amazon and Goldman Sachs announced a partnership to provide lines of credit of up to $1m to merchants selling on the Amazon platform.

Key highlights:

- The application process is fully digital and can be done in minutes, and most customers will get approval results in real time

- The credit lines will come with an annual interest rate of 6.99% to 20.99%

- There are two clear benefits for Amazon from this deal: 1) Amazon adds a new source of revenue with the fees from the Marcus credit lines, and 2) Amazon sellers get needed capital to continue selling on the platform.

- For Goldman Sachs, the benefits are: 1) Helps diversify their loan portfolio, 2) create a digital only process that takes just minutes to approve, 3) – have a true embedded lending solution on a non-financial website/app – it’s expected that 20% of all lending will be embedded lending by 2030