Raising the Rates for Premium Credit Cards: Good Timing or Revenue Solution?
American Express was brilliant in its acquisition of Kabbage. It bought the technologies, not the loan books. Tech Crunch reports:
Unless you are buying a receivable from a bankruptcy court or fire sale, there is not much of a good reason to buy an existing portfolio in these days of COVID-19. Amex knew that!
And, while Kabbage may have a stressed receivable, the firm knows technology and the small business space. And, for American Express, the leader in small business credit cards, this is a no-brainer.
For American Express, it also provides an opportunity to broaden its offerings to small business.
American Express already owns a large portion of the small business card market. This move is a game changer that will bring the company far beyond just plastic.
Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group
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