Amazon.com Inc. is reportedly in talks with Goldman Sachs about a partnership in which the bank would provide loans to merchants operating on the Amazon Marketplace.

The loans would apparently be offered directly through the online retail giant’s platform, according to the Financial Times and CNBC reports that broke the news this morning.

Anonymous sources said that Goldman Sachs has started building technology to integrate its systems with Amazon’s. The tipsters who spoke to the Financial Times described the talks between the companies as being in an “advanced” stage.

Amazon already offers loans to small and midsized businesses that sell goods through its marketplace as a way of fostering its merchant ecosystem. These small merchants have become a vital part company’s business strategy, growing to account for more than half the items sold through its marketplace and physical stores. But Amazon’s lending program has reportedly not grown in lockstep, with leaked financial figures suggesting that the business’ revenue is nearly flat.

One reason believed to be behind the unit’s stagnated top line is that the online retail giant doesn’t want to ramp up its lending activities too quickly for fear of taking on excess credit risks. A tie-up with Goldman Sachs may remove that barrier, Goodbody Stockbrokers UC analyst John Cronin told FT. 

The argument is that a partnership in which Goldman Sachs issues loans and takes on the associated risks could enable Amazon to expand its lending business significantly. Goldman Sachs, in turn, would gain access to a large new pool of potential customers comprised of online merchants. The same quest for new customers previously led the bank to partner with Apple Inc. to underwrite the iPhone maker’s Apple Card.

Since the negotiations between Goldman Sachs and Amazon are not yet final, there’s a chance the joint lending service won’t end up materializing. That’s what happened with the checking account service Amazon sought to provide at one point in partnership with banks but later reportedly abandoned due to regulatory risks.

Amazon’s activities in the financial technology segment are increasingly becoming an extension of its core retail business. The latest example is the gesture-controlled payment system the company is said to be developing, which would enable consumers to pay for a store purchase by placing their palms on a scanner. Amazon reportedly wants to deploy the technology in its Amazon Go cashierless stores and Whole Foods locations to provide a smoother buying experience. 

Image: Unsplash