PYMNTS Player of the Week: American Express

By PYMNTS Editorial (@PYMNTS)  

Name: American Express
Headquarters: New York City, New York
Founded: 1850
Employees: 10,000+
Market Capitalization: $89.5 billion

Key Stats:
1. 3,088 U.S. Bank branches will offer AmEx cards by 2014
2. 80 Online retailers now offer free shipping to AmEx cardholders
3. $1 Minimum for all purchases made with AmEx loyalty points

AmEx Amps Efforts To Extend Network, Add Value
Who says a 163-year-old company can’t learn new tricks? After a bit of a dry spell, American Express is aggressively seeking to position its iconic brand as an innovative digital player.

One of AmEx’s first moves was its decision to test the use of its loyalty points as a branded currency for purchases in New York City taxi cabs, profiled here in MPD’s Gloria Colgan’s piece on PYMNTS. American Express has since expanded the trial. 

On November 19, AmEx revealed its loyalty points can now be used on all purchases of more than $1.00, a move that could encourage its customer base to use American Express everywhere for everyday purchases. Colgan noted in her column that AmEx still faces limitations due to acceptance, especially with SMBs, though a loyal and active user base could create movement on this front.

Elsewhere, AmEx took a key step toward encouraging growth in this base, expanding its issuer network to include another major bank. On November 20, U.S. Bank announced that it will begin to issue cards at its more than 3,000 branches in 2014.

AmEx Attacks Major eCommerce Pain Point With ShopRunner Support

This real-world usage push coincided with a major move by AmEx to increase its online presence. Most notably, its newly inked partnership with ShopRunner solves for its customers what studies have shown to be a big consumer pain point with the online buying process – shipping costs.

ShopRunner will now offer its free two-day shipping to American Express cardmembers who enroll. Cardmembers can take advantage of the service at more than 80 retailers, including big names like Neiman and Kenneth Cole, and perhaps more importantly, they can do so before the holiday season. But, that is just the tip of the iceberg. ShopRunner has made it easy for AmEx cardholders to establish ShopRunner accounts that can be used across all of these retailers, creating an instant wallet on the web and bringing very valuable customers to merchants.

Quote of the Week: “We want to be where our Card Members are so that they can get the most out of Membership every day, and we can do that by connecting our card products to the mobile devices our card members rely on most,” David Yoo, SVP of mobile products and services at American Express, said on November 19, announcing the expansion of its loyalty program.

To view last week’s PYMNTS Player of the Week, click here.