AMEX Launches App-Only Business Checking Account
(28 October 2021 – USA) American Express has launched a digital checking account for businesses and issued its first-ever debit card as part of the package.
Previewed in June, US small and mid-sized businesses can now apply for the new Business Checking account in as little as 10 minutes. The app-only account comes with a debit card for online and instore purchases and ATM withdrawals via the MoneyPass network. It also offers a mobile cheque deposit facility.
The full-service digital account does not mandate a minimum balance, earns 1.1 percent on balances up to US$500,000 and can be connected to other AMEX credit cards. There are no monthly fees with the new checking and debit card account. While new accounts can earn a US$300 deposit bonus, customers won't start earning reward points or redeem them until 2022. The initiative follows the release of a business checking account offering by its Kabbage unit in Q2 2021. AMEX acquired Kabbage in 2020, leveraging the fintech to increase its small business product and service offering.
Without a debit card offering, AMEX was susceptible to credit card spending volatility. The group’s total card network volume dropped by over 30 percent in Q2 2020 compared to Q2 2019 as it suffered the brunt of the COVID-19 enforced lock downs and reduced in-store “card present” consumer spending.
American Express Business Checking was built from the ground up specifically for U.S. small and mid-sized businesses. The launch further expands AmEx’s small business offerings within and beyond the card, building on its acquisition of Kabbage in August last year as part of a strategy to roll out a range of cash flows services to businesses.
“Our small-business customers have come out of the pandemic strong. The debit card is also an opportunity for us to deepen our relationship with customers and get another product in their wallet” stated AMEX Group President of Global Commercial Services, Anna Marrs.
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