American Express is entering the digital payments world with Amex Express Checkout, a new service that allows members to quickly make online purchases via their American Express accounts. As e-commerce and mobile shopping continue to increase in popularity, credit card companies are now integrating new payment methods to make checking out easier on online shopping sites. With AmEx Express Checkout, AmEx cardholders will just have to enter in their username and password from their AmEx account and their payment information will automatically be entered into the billing/shipping sections.
How Is It Unique?
The service is slightly different compared to its competitors, such as MasterPass or Google Wallets, in the fact that it is not a wallet and customers do not have to create a new login and manually connect their credit cards. Another important feature that differentiates Amex Express Checkout from other services is that American Express members do not have to actively enroll in the service. As a result, all U.S. cardholders who have AmericanExpress.com accounts will automatically be able to access the system with their existing login information.
However, the service is more limiting than other payment options. Competing online payment options permit shoppers to select from different brands of debit/credit cards, as well as bank accounts – AmEx Express Checkout will only allow you to pay with an American Express credit card.
Is It Safe?
The system uses tokenization, the process of replacing a debit or credit card number with a valued “token.” Tokenization takes personal information, or the primary account number, and replaces it with non-sensitive data, such as symbols, letters, or any other random sequence of tokens. Not only does this add extra security but also means American Express members will not have to update their credit card numbers in case they expire or get lost. Instead, the new card number will automatically connect to their account upon activation.
“We know our Card Members and merchants want a simple, fast checkout process to make online shopping easy and delightful. AmEx Express Checkout leverages our unique technology to create a checkout experience unlike any other, one that is valuable to merchants and secure for Card Members, giving them peace of mind,” said Leslie Berland, executive vice president of Digital Partnerships & Development at American Express.
Who Will Accept It?
AmEx Checkout is partnering with over 15 merchants that will accept its services between now and the upcoming months including Ticketmaster, Gap Inc., Burberry, Newegg, Avis Car Rental, Tory Burch, and 1-800-FLOWERS.
"We've heard from merchants that cart abandonment is one of the most important issues that they want help solving and Amex Express Checkout is designed to do that," spoke Dave Wolf, VP-global product and business development at American Express.
Where Can I Use It Online?
AmEx Express Checkout will be a primary focus for American Express for the remainder of 2015, mainly online, especially during back-to-school season and the holiday season. The service will be promoted American Express’ website, app, e-mail, online advertising, and social media platforms. As of now, it will not work with buy buttons on social sites such as Pinterest or Twitter, but could possibly in the future. “The opportunity of where this could go is quite endless.,” said Leslie Berland.
For merchant partners, the system will be a commerce solution that will function on any of their websites that accept payments, as it is compatible on desktop, mobile web, or in native apps. Card members are also able to quickly make a purchase using Amex Express Checkout online, as their card account data is sent to the merchants securely and seamlessly.
AmEx Express Checkout is undoubtedly a fast and secure way for consumers to pay online merchants. With no enrollment or account set-up, it is a great service for those who want a hassle free solution to make payments. Tokenization gives AmEx Express Checkout the upper hand with top security and advanced technology. Additionally, having many accepting merchants and online outlets make AmEx Express Checkout a prominent commerce solution that will continue to evolve and expand for years to come.