NEW YORK—American Express is moving away from the prepaid space.
AmEx is selling its prepaid-card technology to InComm Holdings as the lender continues its shift away from down-market customers, Bloomberg reported.
InComm, which is backed by private equity firm Warburg Pincus, will also become the exclusive program manager and processor for AmEx's prepaid products, which include gift cards, business-to-business rewards, tax disbursements and reloadable cards, the companies said in a statement that didn't include terms.
The deal is expected to be completed in early 2018, Bloomberg said.
“AmEx last year dismantled its enterprise growth division, which was created in 2010 as part of an effort by the New York-based firm to broaden its appeal beyond affluent shoppers. The firm had acquired payments startup Revolution Money that year for about $300 million and renamed it Serve, using the technology to offer a line of reloadable prepaid cards that function as a digital alternative to a checking account,” Bloomberg reported.
In 2012, American Express reached a deal with Walmart Stores Inc. to expand sales of its Bluebird prepaid card, Bloomberg noted.