AmEx Ups Ante with Prepaid – The Early Results
January 19, 2012
American Express, known for its array of charge cards, is dipping its toes into a surprising new venture: prepaid cards, according to a report by the Associated Press.
Related: Amex, U.S. Bank Partner on Job Creation Investment
In late 2011, the company launched reloadable prepaid cards available in Target stores as well as introduced a prepaid campus ID card at the University of North Florida. The company divulged that these two ventures contributed to the increase of prepaid income globally during the period.
During the company’s fourth quarter conference call, CFO Daniel Henry stated: “Prepaid is an expanding market. We are investing in prepaid. We think it has very good growth rates over time, and attractive economics for us. This is an area that we are focused as a growth area.”
In the its recent quarterly report, the company also noted that cardmembers spent record amounts on their American Express cards last year.
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