AmEx Launches First All-Digital Checking Account

American Express has launched its first all-digital consumer checking account, available for eligible consumer card members in the U.S.

Rolled out Tuesday (Feb. 8), American Express Rewards Checking offers benefits that include membership rewards points for eligible debit card purchases, an annual percentage yield (APY) rate 10 times higher than the national rate and purchase protection for eligible purchases.

“Our Members want more banking products and services from us,” said Eva Reda, Executive Vice President and General Manager, Consumer Banking, American Express. “And they want more from their checking account, without giving up the benefits that are important to them. That’s why we built Amex Rewards Checking to deliver more value for Members with the powerful and trusted backing of American Express. It’s digital checking without compromises.”

The checking account features an APY of 0.50% and comes with a debit card, which earns point for every $2 spent on eligible purchases. The card is also contactless-enabled for tap-and-go payments. Members can access and manage and deposit checks to their accounts through the American Express app.

The company points to its research that shows consumers enjoy using debit cards for “certain purchases, such as a cup of coffee and ride-share services. In fact, 81% of Gen Z and Millennial consumers surveyed tend to use their debit card as a substitute for cash.”

And as PYMNTS has reported recently, there’s also evidence that these younger consumer could begin cutting on the use of plastic cards soon.

Read more: Gen Z Consumers Love Their Debit Cards…For Now

The pandemic forced many shoppers to embrace contactless digital payments, and Gen Z consumers — who have always lived with the internet — had little trouble adapting.

However, Gen Z shoppers say they anticipate reducing their use of cards in the future: from 35% to 26% for debit cards and 16% to 14% for credit cards, according to a recent eMarketer report. That study also showed the number of consumers using P2P mobile apps will more than double over the next three years, a figure that represents 61% of Gen Z mobile phone users.