American Express has launched its first business checking account, under the umbrella of 2020 fintech acquisition Kabbage.
With an annual percentage yield (APY) of 1.1% on balances up to $100,000, Kabbage Checking is designed to help small businesses grow, with no monthly maintenance fees, no set-up fees and convenient on-the-go features—all backed by American Express.
Now available to eligible US small businesses, Kabbage Checking marks the first of several new digital cash flow management solutions from American Express.
American Express has also begun offering Kabbage Funding to millions of existing customers with plans to make it more broadly available later this year.
Kabbage Funding offers small businesses the opportunity to apply for flexible lines of credit between $1,000 and $150,000.
Together, these products are a part of an integrated platform from Kabbage, combining data-driven products, including payment processing and business insights, to help US small businesses manage their cash flow.
Gina Taylor Cotter, senior vice president of strategy and business operations at Kabbage, comments: “Small businesses should not have to sacrifice the features they expect from a bank in order to experience the benefits of an affordable business checking account.”
“Kabbage Checking is built to give small businesses the flexibility of mobile banking—from in-app account management to mobile check deposits—with the convenience of a traditional bank—including in-person cash deposits, free ATM access, and a compelling APY to directly support our customers’ growth.”
Small business owners can apply online for a Kabbage Checking account in minutes, regardless of their business’s age or revenue. Signing up is fast and there are no minimum balance requirements. Once onboarded, customers can access the following features:
- Free in-network ATMs: Withdraw funds at over 19,000 ATMs
- Mobile check deposits: Deposit eligible checks using the Kabbage app
- Kabbage debit card: Access ATMs, deposit cash and add to digital wallets
- Reserves: Organize your money for specific savings goals or categories
- Bill pay: Set up recurring payments to vendors
- Customised checks: Pay vendors, cover payroll and more
- In-person cash deposits: Deposit funds at 90,000 participating retailers nationwide that may have extended operating hours versus many bank branches
Kabbage Checking and Kabbage’s integrated solutions are part of American Express’s expansion beyond its card business to deepen its relationships with US small businesses.
Paired with its wider set of small-business products across the global commercial services group, American Express aims to be a digital one-stop shop to help manage small businesses’ cash flow.