American Express, (NYSE:AXP) known for its array of perks-laden cards, is jumping into the highly competitive arena of digital chequing accounts.
The company on Tuesday launched "Amex Rewards Checking" to its U.S. customers. Any non-business card member in good standing is eligible for the no-fee, no minimum balance account.
While there is no shortage of options for Americans seeking a chequing account, from fintech disruptors to big banks, Amex thinks their card members will find the offer enticing. That’s because customers who enjoy racking up points on transactions can use the account’s debit card to earn one reward point for every $2 spent, as well as a 0.50% annual yield on balances.
American Express called it the company’s first checking account for consumers. Last year, the firm rolled out an account for small business owners called "Kabbage Checking." The company had more than 56 million U.S. cards in circulation last year, though it doesn’t give a breakdown between consumer and business users.
The accounts will be integrated into the Amex app and provide perks including purchase protection on debit purchases and round-the-clock customer service. Of particular interest for the card company is luring millennial and Gen Z users to adopt the account.
"There is no question in my mind that some portion of our customer base are going to decide this is their primary account, and others who are going to try it out and start out with this as their second or their third account," said one AMEX official.
AXP shares gained 75 cents to $188.62 early in the trading day.
