The arrangement will allow American Express card members to sign up their corporate cards to pay with merchants that participate, allowing for a contactless transaction.
“Businesses today are going digital, and American Express is at the forefront of digital innovation, helping companies to streamline their payments systems and simplify their processes,” said Greg Keeley, executive vice president of Global Corporate Payments at American Express. “We continue to invest and expand digital offerings for our corporate customers in ways that maximize security and enhance the user experience.”
The timing is good for American Express, whose stock has fallen 13 percent this past year over concern that earnings could be down for the next year after losing two big partnerships, Costco and JetBlue Airways. Costco accounted for 8 percent of American Express’ total billed business last year and one-fifth of its worldwide credit card loan book.
Adding to its problems, American Express lost a court case that accused Amex of violating antitrust laws. Amex was trying to bar its merchants from steering customers to use other credit cards like Visa and MasterCard. American Express is also dealing with the unexpected death of its president Ed Gilligan and the impact of a strong dollar on earnings.
Additionally, activist investor ValueAct Capital Management announced last Friday that it took a $1 billion stake in the company. Investors are wondering if ValueAct will force more cost cutting at the credit card giant. Warren Buffett’s Berkshire Hathaway is the largest shareholder of American Express and owns 15 percent of the company.
Apple stock is up 2 percent on Monday to trade at $117 and American Express stock is up almost 1 percent to trade at $80.22.