credit card news
On March 19, 2015, American Express announced the expected release of two new, co-branded premium cards as part of a multi-year agreement with Charles Schwab & Co. Inc.
According to president of Consumer Products and Services for American Express, Josh Silverman, the partnership will cultivate economic benefits over time for shareholders. This will allow customers the companies share in common to “benefit from a relationship with two leading financial services brands,” says Silverman.
American Express has had a rough start to 2015, starting with raising the annual rates of more than 1 million cardholders. That, coupled with a restructuring plan that laid of 4,000 employees resulted in the company’s stock dropping 13 percent.
In the month prior to the announcement of the Charles Schwab agreement, AmEx had recently suffered severed ties with Costco stores in the U.S. after a 16-year partnership. A week following that loss, JetBlue Airways announced their upcoming switch from AmEx to MasterCard and Barclays as credit card providers.
This co-branding relationship couldn’t come at a more needed time for American Express.
The deal has been finalized, but little details have been released about the new cards. Some analysts speculate that one of the cards may be a credit card and the other a charge card. The release date of the cards, however, is expected to be in early 2016.
Photo sources: JB Reed/Bloomberg News, aspeninstitute.org