WebBank Becomes Card Issuer on Amex Network

WebBank has become a card issuer and participant in the American Express network, the Utah-based bank said Tuesday (Aug. 16).

“The collaboration allows WebBank to issue credit card and payment solutions that include American Express benefits,” the company said in a news release. “American Express selected WebBank as one of its key issuing banks focused on the FinTech industry.”

The bank said it expects to begin issuing the card through FinTechs later this year.

Jason Lloyd, WebBank’s president and CEO, said the arrangement lets his company expand its product offerings, and called the deal “a great example of two industry leading organizations creating value for and through the broader fintech community.”

And William Stredwick, American Express senior vice president and general manager for global services in North America, called the deal a step “toward empowering fintechs to offer payment innovations on the Amex network.”

In July, American Express reached an agreement with the credit card FinTech Cardless that lets several high-profile U.S. brands debut digital-first cards through the Cardless platform. The partnership came as Cardless received what it called a “significant” investment from Amex Ventures, American Express’ strategic investment operation.

Cardless said it would use its investments from Amex Ventures and other venture capital investors to expand the company’s product offerings, including seeking out new opportunities, innovations, and partnerships within the American Express network.

In June, WebBank helped PayPal launch PayPal Pay Monthly, a buy now, pay later (BNPL) offering that lets customers space payments over a longer period of time, giving them more flexibility and choices to pay for the items they want.

Customers can make purchases between $199 and $10,000, splitting the cost into payments over a six-month to two-year period, with the first payment due a month after purchase.

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