AmEx deepens push into small and mid-market businesses with new cards

American Express <AXP.N> launched a new commercial credit card on Wednesday and said it plans to introduce another later this year, as it aims to solidify its foothold among small- and middle-market companies.

Business customers tend to spend heavily, giving companies a strong incentive to bring them into their fold. While AmEx is a dominant player, the new cards could help it reinforce its lead.

For an annual fee of $295, the company's Graphite Business card will offer a 2% cashback on eligible purchases and 5% on flights and prepaid hotel bookings made through its travel platform.

AmEx also plans to introduce a new corporate cashback card this fall and will disclose fee details closer to the launch.

"The two new cashback cards are a continuation of a strategy that we've been executing for a long while," said Raymond Joabar, group president of AmEx's global commercial services.

"Our customers need partners who understand the complexities of their business as they grow from small operations to mid-sized firms and potentially, multinational companies."

In January, AmEx rival Capital One <COF.N>struck a $5.15 billion deal to buy Brex, a financial technology platform that offers corporate credit cards and an expense management platform.

The deal is expected to give Capital One a larger share of the market for business spending. Still, AmEx CEO Stephen Squeri said on an earnings call that the company was "three times larger than anybody else."

In a nod to rising demand for AI tools, AmEx also said it would cover up to $300 a year of ChatGPT Business subscription costs for holders of its U.S. Business Platinum and Business Gold cards.

AmEx will roll out a new expense management software this year to let companies manage expenses better.

-Reporting by Niket Nishant in Bengaluru; Editing by Shilpi Majumdar/Reuters