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.
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.