American Express announced today that it is launching a co-branded credit card with Amazon.com aimed at U.S. small businesses. The card is part of a multi-year partnership that includes data insights into customer purchasing activity and Amex card acceptance. Shares of both companies moved up after the announcement.
The deal gives Amex a big platform to woo small business customers as it aims to become a leading lender to small and mid-sized companies. Small business cards can be highly profitable for banks as business tends to spend much more than regular consumers.
Amex came ahead of other banks, including J. P. Morgan and Citigroup, which had been competing to partner on the co-branded card earlier this year. Amazon ended up going with the leader in small business cards.
The news comes just one day after the U.S. Supreme Court sided with Amex in a lawsuit over merchant fees. The high court said Amex’s policy of forbidding retailers from encouraging customers to use rival cards with lower fees doesn’t violate antitrust law.
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