After 12 years and billion in fees, Fidelity announced Monday (Jan. 4) that it will be ending its credit card partnership with American Express and Bank of America, according to Reuters reports.
The Boston-based financial services institution will be taking its 24 million customers to its new partners — U.S. Bancorp and Visa Inc. The new exclusive deal will provide Fidelity customers with Visa-branded credit card products.
Fidelity gave no official reason for the split. Ram Subramaniam, president of Fidelity’s retail brokerage business, noted: “It’s been a long, good partnership.”
The end of that long, good partnership comes as yet another piece of bad news for American Express, whose 2016 so far is looking alarmingly similar to 2015. Last year was also marked by the end of some high-profile partnerships, including Costco and JetBlue. Those losses cost Amex 25 percent of its share price last year.
Previously, Fidelity offered 2 percent cash back credit cards with Amex and BoA’s FIA Card Services — a time period marked by $1.1 billion in cash rewards for Fidelity customers.
The new cards will be chip-enabled and digital wallet-accessible (meaning they will work with Apple, Android and Samsung Pay).
U.S. Bank will also acquire Fidelity’s existing co-brand credit card portfolio.