Just days after American Express announced its largest-ever rewards program as an effort to get more SMEs to accept its products, JPMorgan Chase & Co. made its own move to take market share away from Amex.
Reports by Bloomberg Wednesday (Oct. 19) said the bank is rolling out a new business credit card for small businesses with a competitive rewards program. The Chase Ink Business Preferred card will be released later this year with an 80,000-point sign-on bonus, reports said, and will offer benefits for business travel, telecommunications, shipping and social media advertising spend, according to the bank’s president of branded cards, Pam Codispoti.
“The credit card space is incredibly competitive, and we want to be aggressive in investing in the best products,” Codispoti told the outlet. “Customers tell us the way they’re marketing their products and services is changing. They’re spending more on things like Facebook paid search. To have the opportunity to earn triple points on that is important to them.”
With interest rates remaining at record lows, banks are looking to up their earnings through credit card fees, reports said. The competitive market, however, is fueling a focus on rewards programs. American Express has declared itself a market winner in the SME card space, though the company does not report exact details of purchase volume.
JPMorgan, meanwhile, said small businesses spend about $61.6 billion a year with its cards; Bank of America reported $28.4 billion in spend, and Capital One reported $28.2 billion in spend, according to the outlet, which cited Nilson Report statistics.
A spokesperson for American Express reportedly declined to comment on the small business commercial card market and its competitive nature.
JPMorgan’s most recent earnings report, released last July, saw positive results attributed to consumer credit card spend. Revenues hit $25.2 billion, a 3 percent increase.
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