27 July 2016
Find out more

Amex earmarks $100m for investment in digital commerce startups

08 November 2011  |  7607 views  |  2 cash

Credit card giant American Express has set up a $100 million fund to invest in digital commerce startups.

Amex, like rivals Visa and MasterCard, says it recognises that the payments industry is undergoing fundamental change as commerce moves online.

To help fend off competition from the likes of PayPal and Google, as well as a raft of new entrants, last year it acquired the Revolution Money platform and used it as the basis of a digital payment and commerce offering called Serve.

The firm has also made a number of other digital moves, cutting a deal with Facebook, filing a patent for a system and method for using loyalty rewards as a currency, investing in mobile outfit Payfone and buying Sometrics, a virtual currency vendor.

Now it is promising a "multi-year digital commerce initiative designed to help identify and develop innovative technologies that will help accelerate the company's digital transformation and strengthen connections to a growing base of customers around the globe".

As well as earmarking $100 million for investment, an office has been established in Silicon Valley from which the initiative will be managed by Harshul Sanghi, who was recently appointed as managing partner, enterprise growth group. Sanghi previously ran Motorola Mobility Ventures.

Dan Schulman, group president, enterprise growth, American Express, says: "American Express is a 162 year old company that has continuously reinvented itself. As we enter the next chapter in our history, we recognize the need to work with emerging technology companies to inspire change, encourage innovation, and ultimately deliver the best products and services to our customers."

Sanghi adds: "The payments industry is undergoing a fundamental change as the very nature of commerce is redefined. We believe our global network of businesses and consumers, international employee base, world-class customer service and data analytics will provide a significant advantage to potential portfolio companies."
KeywordsE-COMMERCE

Comments: (2)

Mark Calvin Rittmayer
Mark Calvin Rittmayer - CSC Asia Pacific Ltd - Hong Kong | 08 November, 2011, 16:52

So we are working on an ecommerce transformation project in Hong Kong does anyone know how we get a $1million of the 100M to accelerate the project ? We will accept american express on re-launch Jan 2012.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Brad Rosenthal
Brad Rosenthal - Payment Adviser Pty Ltd - Sydney | 08 November, 2011, 23:07

My startup has technology that uses card and other payment message sets to carry <16 characters of referencing information to electronically link any amount of merchant or remittance data to a transaction to enhance reconciliation for individuals and business. I have tried to get the attention of Amex. Maybe this comment will help.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

American Express files virtual currency patent

American Express files virtual currency patent

01 November 2011  |  15340 views  |  1 comments
Visa Europe invests &#163;24.7m in Monitise

Visa Europe invests £24.7m in Monitise

31 October 2011  |  11406 views  |  0 comments
Amex partners China's Tencent on e-payments

Amex partners China's Tencent on e-payments

28 September 2011  |  6135 views  |  0 comments
Amex buys virtual currency firm Sometrics

Amex buys virtual currency firm Sometrics

21 September 2011  |  7624 views  |  0 comments
Google launches mobile wallet

Google launches mobile wallet

19 September 2011  |  16878 views  |  1 comments
PayPal goes after the high street

PayPal goes after the high street

15 September 2011  |  13520 views  |  1 comments
Visa cites m-payments as it pushes US to EMV

Visa cites m-payments as it pushes US to EMV

09 August 2011  |  15648 views  |  1 comments
Amex notches second carrier tie-up for Serve m-payments platform

Amex notches second carrier tie-up for Serve m-payments platform

01 August 2011  |  6964 views  |  0 comments
Amex partners Facebook for coupons push

Amex partners Facebook for coupons push

19 July 2011  |  9816 views  |  0 comments
Visa preps digital wallet

Visa preps digital wallet

11 May 2011  |  12798 views  |  0 comments
Visa invests in Square

Visa invests in Square

28 April 2011  |  14396 views  |  1 comments
Amex makes mobile play with Payfone investment and partnership

Amex makes mobile play with Payfone investment and partnership

13 April 2011  |  9621 views  |  0 comments
Amex unveils digital payments platform

Amex unveils digital payments platform

28 March 2011  |  12992 views  |  2 comments
American Express to offer merchant discounts via Foursquare

American Express to offer merchant discounts via Foursquare

07 March 2011  |  11400 views  |  0 comments
Amex shells out EUR496m on Loyalty Partner

Amex shells out EUR496m on Loyalty Partner

16 December 2010  |  10222 views  |  0 comments
Amex spends $150m on CNP fraud prevention firm Accertify

Amex spends $150m on CNP fraud prevention firm Accertify

04 November 2010  |  11051 views  |  0 comments
American Express to acquire Revolution Money

American Express to acquire Revolution Money

18 November 2009  |  11120 views  |  2 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit www.abe-eba.euFind out moreVisit VocaLink.com

Top topics

Most viewed Most shared
satelliteContactless Bitcoin startup Plutus Tap &am...
9456 views comments | 9 tweets | 4 linkedin
MasterCard agrees £700m VocaLink acquisitionMasterCard agrees £700m VocaLink acqu...
9354 views 14 comments | 32 tweets | 38 linkedin
Apps crush internet for UK banking loginsApps crush internet for UK banking logins
8131 views comments | 19 tweets | 25 linkedin
Telefonica Germany launches Fidor-backed mobile banking serviceTelefonica Germany launches Fidor-backed m...
6112 views comments | 14 tweets | 19 linkedin
Thomson Reuters and Imperial College form fintech and regtech research partnershipThomson Reuters and Imperial College form...
6024 views comments | 29 tweets | 16 linkedin

Featured job


Brussels (Belgium) or Paris (France)

Find your next job