Credit card issuer American Express announced Wednesday (Nov. 30) it is enabling contactless mobile pay for cardholders in Canada that have an Android device.
In a press release, Amex said the ability to pay without whipping out a card is available through the Amex app for eligible consumer, small business and corporate cards issued by Amex Bank of Canada. The service will work with eligible Android handsets at merchants in Canada that accept American Express contactless payments.
“Cardmembers can shop with ease using their mobile devices, while continuing to experience the service they’ve come to expect from American Express,” said Suat Alaybeyoglu, VP of consumer acquisition and management at American Express Canada, in the press release. The move on the part of American Express comes at a time when customers, at least in the U.S., could get hit with higher fees for late payments.
According to a report by The Wall Street Journal, the federal government is moving to raise the limit on the amount credit card companies can charge on some late fees, and starting in January, American Express will be the first to respond. WSJ reported American Express could charge as much as $38 if customers are late more than once in a six-month time period. That raises American Express’ fees by $1. American Express already charges the highest fees.
WSJ also noted the raised fee puts American Express at the maximum amount allowed based on the Consumer Financial Protection Bureau’s guidelines. “There are business costs associated with not paying on time, and late fees are intended to recapture some of that cost,” American Express said in a statement to WSJ. It went on to say “a very small number” of its customers miss two payments during the course of six months.
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