Credit Card News
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Other » American Express Goes After Debit Card Market

American Express Goes After Debit Card Market

By
Add to Favorites:
American Express Goes After Debit Card Market

American Express has long been a powerhouse in the credit card market. Recently, it has ventured into other financial products like savings accounts. Now the credit card powerhouse, tired of being shut out of the lucrative debit card market, is offering a new product called Serve, which is a form of a debit card.

How it Works

If you are an avid online shopper, you’ll recognize the concept that American Express is offering with its Serve account. Essentially, it is an electronic wallet like PayPal. The Serve account is linked to a funding account, which is either a checking or savings account or a credit card.

The Serve account can be used for making online purchases, shopping in brick-and mortar stores via a plastic card, or sending money to another person. Serve is also a payment processor for businesses to process credit cards. Money is moved from the funding account to the Serve account at the user’s discretion.

Mobile Payments

Another feature of the Serve account is mobile payments. In much the same way as PayPal allows transfers from smartphone to smartphone, by either bumping the two phones together or using the mobile app, Serve offers an option for payments to be made from one smartphone user to another.

The Benefits

The primary benefit of using Serve, PayPal and other electronic wallets is that they keep the credit card or funding account information confidential. Say a Serve account holder makes an online purchase. When it comes time to check out, the user enters the Serve account information as the payment option. If hackers were to get their hands on the account information, they would not gain access to the Serve user’s full bank account or credit line.

Serve could benefit retailers, too. American Express charges merchants a 2.5% fee on every purchase made with its credit card. But, according to Bloomberg News, Serve payments will “generally” be charged at a lower rate.

Add to Favorites:

Related News:

Fifth Third Bancorp Upgrades App

By Dar Dowling, Posted: January 20, 2017

Fifth Third Bancorp has upped the ante when it comes to their mobile app, in terms of how many ways users can pay for merchandise – now letting them make payments with all of the available payment platforms. Continue reading
New Credit Card by Amazon and Chase

By Dar Dowling, Posted: January 19, 2017

Amazon.com, Inc. and Chase have joined together to roll out the new Amazon Prime Rewards Visa Signature Card offering 5% back on all Amazon.com purchases. Continue reading
Wix and Square Team Up to Make Payments Easier

By Dar Dowling, Posted: January 18, 2017

Wix, a cloud-based web development platform letting people set up a wide range of websites, is teaming up with Square to provide merchants and entrepreneurs a new method of taking payments for products and services bought online and in ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Unlimited 1.5x rewards on every purchase, every day. For every $1 you spend, you earn 1.5x Miles.
For Excellent, Good Credit
You could turn $200 into $400 with Cashback Match™. We’ll automatically match all the cash back you earn at the end of your first year. New cardmembers only.
For Excellent, Good Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit