American Express has launched its first small business checking account, following on from the acquisition of Kabbage last year. The new Kabbage Checking account sees the leading small business credit card issuer further target small-to-medium-sized companies in an eye for growth.
Amex Launches New Small Business Checking Account
According to research from American Express, while the coronavirus has impacted businesses and consumers, some small businesses have recovered faster than consumers. Data from the company shows small business Amex card spending is up 6% from the same period in 2019 – impressive growth given the considerable hardships of the COVID-19 pandemic.
Now, the financial giant is looking to attract these rebounding businesses with a new checking account offered through Kabbage. The new Kabbage Checking account is a no-fee, fully digital account that pays 1.1% APY in interest balances of up to $100,000. The new account also features mobile deposits, online bill pay and targeted savings, as well as an expansive network of ATMs.
Targeted at Post-Pandemic Businesses
Amex sees the new Kabbage Checking service as an excellent way to increase its already strong foothold with U.S. small businesses. Speaking to Fortune, Group President, Global Commercial Services and Credit & Fraud Risk at American Express, Anna Marrs said the new checking account was ideal for firms that are “just getting stood up, particularly in a post-pandemic world, who might not have the ability or need to borrow at this time.”
Amex and Kabbage
American Express is already the largest issuer of small business credit cards in the United States. The company claims its small business portfolio is larger than its five closest competitors combined, including major names like Chase, Citi, and more.
Amex acquired “substantially all” of Kabbage, an online lender to small businesses and consumers, in late 2020. That purchase saw Amex seeking to become an essential partner to small and medium-sized companies in the U.S. – and the new Kabbage Checking account seems to be the first step in the process.
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