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The pact is a multi-year agreement to issue two
kinds of cards, American Express said in a statement. The
company declined to disclose other terms and said details of how
the cards will work for customers will be announced closer to
the their expected offering early next year.
If the arrangement tracks one that American Express has had with
brokerage Morgan Stanley since 2012, the companies will offer
both charge cards, which customers would pay off monthly, and
credit cards, on which they can carry balances.
Competition among card companies has heated up in recent years
as issuers have offered richer rewards to customers for their
spending and as retailers and airlines have demanded better
terms for access to their customers in co-branded deals.
American Express said in February it was ending a 16-year deal
with Costco because it could not reach renewal terms with the
retailer that would make "economic sense."
The end of the Costco deal has raised questions among investors
in American Express stock about how much money the company and
its rivals will be able to make with co-branded deals in the
future.
On Wednesday, American Express said it was teaming up with seven
U.S. companies, including Macy's Inc and AT&T Inc, to create a
cross-brand loyalty program, where customers can earn points by
buying items at participating companies.
(Reporting by David Henry in New York; Editing by Cynthia
Osterman)
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