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American Express to Offer Credit Card for Small Businesses

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American Express Co. (AXP - Free Report) will be launching a co-branded credit card with Amazon.com Inc. (AMZN - Free Report) targeted at small businesses.

The credit card will be part of the multi-year agreement between the two companies and includes an enhanced data solution that gives businesses in the United States a clear understanding of their purchasing activity. These cards will also have global acceptance.

Earlier this year, American Express launched an enhanced data solution with Amazon Business, Amazon’s B2B e-commerce marketplace and purchasing solution. This agreement provides businesses with line-item detail on their Amazon transactions, enabling more efficient monitoring, control, and reconciliation of Amazon Business purchase transactions made with American Express Corporate Cards or Corporate Purchasing Cards in the United States.

American Express is committed to make it big in serving the market for small enterprises, since these are the backbone of the country’s economy. Also, small enterprises are expected to see increased business from economic strength, which should drive credit card usage.

Amex has a solid offering of charge cards and credit cards for small business. These cards let these businesses take advantage of the well-established customer programs provided by American Express, including the Membership Rewards program, Global Dining Program, and American Express Global Business Travel.

Various perks offered by these cards to small businesses make them attractive. Some of these perks are Return Protection, Year-End Summaries, RecieptMatch, Sync with QuickBooks, Flexible Spending Limits and OPEN Saving.

In a year's time the stock has gained 18.2% compared with the industry's growth of 2.11%.

The U.S. small business credit card market holds immense potential for growth. A report by ResearchAndMarkets.com says that “Small businesses are the backbone of the U.S. economy, and credit card issuers have products that help them finance, procure, and transact. Small business credit cards control and report expenses with integration into many small business accounting programs; special tools help keep the financials organized.” The report adds that small business card will approach $700 billion by 2022. Other credit card companies like JPMorgan Chase &Co. (JPM - Free Report) , Mastercard Incorporated (MA - Free Report) and Visa are vying for this market.

American Express carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

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