American Express Expresspay Press Release

American Express Expands Availability of new "Contactless" Payment Product Designed to make Everyday Purchases Quick and Easy

ExpressPay from American Express Offers Convenient and Hassle-Free Alternative to Cash

NEW YORK, July 16, 2003 --American Express Company today announced the pilot expansion — in the greater Phoenix area — of its latest payment product, ExpressPay from American Express. ExpressPay is a fee-free, key fob (key chain attachment) powered by radio frequency technology that offers a quick, convenient and contactless way to make everyday purchases. ExpressPay, which the company began piloting last summer with its employees in Phoenix, is now available at more than 175 merchant locations in the greater Phoenix area, including all Carl’s Jr. locations, and participating Dairy Queen, Kwik Kopy Printing, Quiznos Subs and Schlotzsky’s Deli locations.

ExpressPay is an easy-to-use alternative to cash for making purchases at merchants where speed and convenience are important — such as quick serve restaurants, supermarkets, drug stores, gas stations, and corporate cafeterias. Users simply hold the ExpressPay key fob next to a companion reader at checkout to make purchases. Payment is authorized in seconds and no signature is required. ExpressPay links directly to an existing credit, charge or debit card to fund the purchase.

“ExpressPay is a powerful innovation that allows consumers and merchants to benefit from added speed and convenience,” said David Bonalle, vice president and general manager of Advanced Payments, American Express. “We have found in testing that consumers prefer using their ExpressPay key fob rather than fumbling for their wallets, while merchants enjoy the benefits of their customers’ increased spending and reduced time at the checkout counter.”

Consumers have the option of funding ExpressPay in two ways: either as a direct link for payment to an American Express® Card or as a pre-paid product linked to any major credit, charge or debit card. ExpressPay Direct Link, with a daily spending limit of $150, links to any consumer American Express charge or credit card for payment - with individual charges recorded directly on the monthly Cardmember billing statement for easy tracking. Customers making ExpressPay purchases linked to their American Express Cards will receive the rewards and loyalty benefits associated with their Cards. ExpressPay Pre-Loaded can be pre-paid up to $600 monthly using any major credit, charge or debit card and can be automatically reloaded from the same payment source when the balance goes below $20. As with all American Express Card products, customers are not liable for any fraudulent ExpressPay charges. For added convenience, users who register online at the ExpressPay website can track their purchases here — this site also includes a complete list of merchant locations where ExpressPay is accepted.

Since the launch of the ExpressPay pilot, results show that participating merchants have seen customer spending increase by 20 percent - 30 percent compared to their cash spending, while customers have seen their checkout time reduced by 30 percent - 40 percent.

“We’re always looking for new ways to deliver more value to our customers,” said Margaret LeVecke, franchise owner, Carl’s Jr. “ExpressPay will allow us to differentiate ourselves from our competitors by providing a faster and more convenient payment experience. We are excited about being a participant in the pilot and getting the learnings here in Phoenix to see how it can help us grow our business.”

American Express developed ExpressPay in conjunction with Texas Instruments RFid Systems, a world leader in radio frequency identification (RFID) technology. The ExpressPay key fob and reader are designed with an open architecture that is compatible with RFID industry standards (ISO/IEC Standard 14443). The ExpressPay key fob includes a number of security features, including data encryption. The ExpressPay reader can be implemented at merchant locations easily. It works with their existing point-of-sale system and is free to merchants during the pilot. Charges are authorized and processed through the existing credit and charge card payment network.

The Phoenix rollout of ExpressPay expands on the pilot the company began a year ago, when it introduced the contactless key fob to several hundred employees for use at its corporate cafeteria in Phoenix, and at a handful of area merchants. Last Fall, ExpressPay was market tested with non-American Express employees in New Jersey - at a corporate cafeteria serving multiple tenants and, separately, for making purchases at a local New Jersey fitness center. Earlier this year, the company introduced ExpressPay to the cafeteria serving a major financial institution and at American Express’ headquarters cafeteria and convenience store — all in downtown New York.

The introduction of ExpressPay continues American Express’ tradition of innovation. American Express introduced the industry’s first plastic credit card in 1959, and, in 1972, issued the first magnetic stripe card nationally. In 1999, American Express delivered the payment industry’s first wide-scale rollout of smart cards in the United States when it introduced Blue from American Express. The company also was an early adopter and industry leader in leveraging the Internet to develop new products, expand its customer service, and improve its overall operations.

For more information on ExpressPay, click here.

American Express Company is a diversified worldwide travel, financial and network services company founded in 1850. It is a world leader in charge and credit cards, Travelers Cheques, travel, financial planning, business services, insurance and international banking

Click here for a link to the press release at American Express' web site...

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