AmEx to launch its first cross-brand loyalty program in U.S.
(Reuters) - American Express Co (AXP.N: Quote) said it will team up with seven U.S. companies, including Macy's Inc (M.N: Quote), AT&T Inc (T.N: Quote) and Exxon Mobil Corp (XOM.N: Quote), to launch a cross-brand loyalty program for the first time in the United States.
The program, called Plenti, will launch this spring and operate like drugstore-rewards programs, letting customers earn points by making purchases at the participating companies, which also include Rite Aid Corp (RAD.N: Quote) and Hulu.
For example, users will be able to pay for their purchases at Rite Aid using the points they earn on paying their AT&T bills.
AmEx will operate the so-called coalition loyalty program and collect fees from partner companies. It runs similar programs in Poland, Germany and Italy.
The Wall Street Journal first reported the news. (on.wsj.com/1betYdz)
The company's announcement on Wednesday comes about a month after Costco Wholesale Corp (COST.O: Quote) said it would end its 16-year partnership with AmEx in March next year.
AmEx said the loss of the contract would hurt earnings for the next two years while a JPMorgan analyst said the loss would reduce spending on AmEx cards by about $80 billion a year, including their use at businesses other than Costco's stores.
AmEx raised interest rates for over 1 million of its cardholders for the first time in more than five years last month.
(Reporting by Shivam Srivastava in Bengaluru; Editing by Anupama Dwivedi and Savio D'Souza)
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