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Amex introduces prepaid card

December 22, 2011

A major player in the credit card industry is making headlines after trying to enter new markets and attract a different consumer base.

A major player in the credit card industry is making headlines after trying to enter new markets and attract a different consumer base.

American Express introduced a new prepaid card in recent months called Serve, which hopes to better compete against digital payment providers, The Wall Street Journal reports. Some customers feel that the new card allows them to better manage finances and limit the amount spent at stores without running up balances.

“I have enough credit cards,” said Michael Thomas, a Florida resident, in an interview with the newspaper. “I used to have an American Express (credit) card but I kind of consolidated lines of credit a few years ago. Being 25, I don’t want a lot of open revolving credit around, especially in an impulse-driven system.”

Dan Schulman, who runs Amex’s Enterprise Growth Group said that the card would appeal to customers who wanted to join the company’s network but didn’t have good enough credit for another type of card.

The firm, which is one of the largest in the merchant services sector, made headlines in November when it announced new rewards for members at certain retailers. Shoppers using Amex at Apple, Target and other brands were able to get more points from November 21 to 30.

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