Serve Goes Online So You Can Leave Home Without AMEX Card
By Azam on March 28, 2011
American Express is going online with Serve to handle transaction payments over the web and compete with the PayPal the leading payment system and others.
Serve will let consumers make purchases, take cash withdrawals from ATMs and make peer 2 peer payments from their computer or their phone.
“What we are trying to do is put into place a platform–not a card, or an e-wallet–that enables digital payments and commerce that allows consumers and merchants to seamlessly move between online and offline,” said Dan Schulman, Group President, Enterprise Growth at American Express.
To start, most consumer fees will be waived for at least the first six months, including fees for adding money to the account and transferring funds between Serve users. The first ATM withdrawal each month is free, but after that consumers will be charged $2. After the introductory period, consumers will be charged 2.9 percent plus 30 cents each time they load money (that drops to 0 percent for cash, debit and ACH).
Merchants will also pay, but will be charged a discounted rate for transactions made in stores and online since Serve is considered a prepaid card. Typically, prepaid discount rates are less expensive than credit rates, according to a spokeswoman.
Amex wants to start collecting consumer data and working with partners to start making targeted offers.
“We’ll probably make the equivalent once we are at scale, depending on funding and merchant mix through payments alone. We think that’s a great business. We also think that the data we can collect with consumers, assuming they give permission, will add a number of value-added services in connection with partners.”
War for your Wallet
The field is getting is heating up with the competition and different competitors from traditional credit card companies, carriers, mobile device makers, and a number of startups.
Amex is building the digital payment system from the Revolution acquisition from AOL Steve Case. Amex is trying to build new division with a younger demographic and new behavioral pattern evolving from new technology and devices.
Recent Acquisitions
Amex Revolution Money
Visa PaySpan
StartUps
Boku, Zong, Bill to Mobile and Square
Tags : American Express, Amex, apple, Boku, Master Card, PayPal, PaySpan, Revolution Money, Square, Visa