InComm has agreed to acquire the exclusive distribution rights of American Express’s (Amex’s) prepaid reloadable and gift card products in the US.
Under the terms of the agreement, InComm will become the exclusive programme manager and processor, while Amex will continue to act as the issuer and network for all products involved in the transaction.
Additionally, InComm will buy the Serve technology platform and other assets related to the Amex prepaid reloadable and gift card products business.
The Amex prepaid products included in the deal are: US gift cards, B2B rewards and incentives, tax disbursements and general purpose reloadable (GPR) cards.
Amex executive vice president and general manager of global prepaid and alternative payments Stefan Happ said: “After considerable deliberation, we have decided to partner with InComm as we start a new chapter for our prepaid business.
“InComm’s expertise and deep knowledge of the industry will be a great asset as we look to bring our best-in-class prepaid and gift card products to even more customers.”
InComm CEO Brooks Smith said: “This is a very exciting deal for us, our retail partners and the new distribution partners this transaction will bring us.
“We are always striving to add new and exciting products to our portfolio so our partners can better meet the needs of their customers. With American Express’s suite of prepaid products, we are adding yet another popular and highly reputable brand to our ever-growing portfolio.
“Through our 15-year relationship with American Express, which includes being the first to distribute and activate their gift card in retail, we have gained a deep expertise that will allow us to be great stewards for their brand.”
Pending receipt of regulatory approvals and customary closing conditions, the transaction is expected to conclude during the first quarter of 2018.