Amazon shares ended higher Tuesday, as the global tech giant shared the news it is working with American Express to release a co-branded credit card for small businesses. The move comes as Amazon works hard to gain a firmer foothold in the SME market – similar to the one it now has among consumers.
Amazon shares ended the US Tuesday session 1.68% higher at $1,691.09. However, the stock is lower in pre-market trade. American Express shares closed 0.37% lower at $98.21.
Amazon’s co-branded SME credit card
Amazon has been working to create and select the right partner for this latest venture and finally selected American Express, over a number of other banks, including JP Morgan Chase.
“We selected American Express as our partner for the upcoming small business credit card because of our shared commitment to helping small businesses grow,” said Max Bardon, Amazon’s VP.
“Offering the best of both brands, the cobranded small business credit card program will combine the buying power, convenience and value small businesses have come to know and love from Amazon backed by the world-class service, benefits, access and security of American Express,” Bardon added.
Amazon and Amex bet on SMEs
This new venture for Amazon is its first into the world of small business finance. The idea is that by offering a credit facility, one that also gives users additional rewards when buying goods from Amazon, it will increase its appeal to the large multi-industry SME sector.
It’s also a positive move for Amex, as the SME sector can be a lucrative one for banks.
“Amazon’s global product selection and selling services help small businesses think big and run efficiently,” said Glenda McNeal, President, Enterprise Strategic Partnerships at American Express.
“We’re delighted to expand our partnership with Amazon by offering a new cobranded small business card, and by also harnessing the collective insights and expertise of our companies to deliver tangible value to our mutual customers who use Amazon’s services,” she added.