In an attempt to compete with Visa and PayPal, American Express recently launched the mobile and online payment system Serve, according to a report from Bloomberg News. Consumers with existing AmEx accounts will be able to load money from those into Serve with no fee added.
The lender, which sees customers make more payments than any other card issuer in the world, does not issue debit cards, which puts it at a massive competitive disadvantage to other processing networks, the report said.
“This is really the first time that American Express is going to be able to address those consumers that typically would utilize either a debit card or checking account,” Dan Schulman, group president of enterprise growth at American Express, told the news agency.
Visa and PayPal make hundreds of millions of dollars per year each based on this type of online purchasing system, as debit and other non-credit payment options have become far more popular with consumers.