American Express is adding cash back, a popular credit card feature, to its prepaid debit cards as it seeks users beyond its traditional customers.
The company has long relied on the corporate traveler and the well-to-do, but increased competition has forced it to look at new customers. Prepaid cards, which appeal to lower-income Americans and people who don't have traditional bank accounts, are a small and growing business.
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CEO Kenneth Chernault has said American Express would spend heavily this year to create new products and keep its already existing customer base.
On Wednesday, AmEx will release a new Serve card that will give users 1 percent cash back on all purchases. It's the first time a prepaid debit card has offered cash back for every buy. Some prepaid cards offer cash back at certain retailers.