Equity Bank launches American Express cards

Equity Bank has begun issuing American Express-branded charge and credit cards in Kenya ten months after signing a deal to become the exclusive issuer in East Africa.

The bank has also signed a deal to issue cards across Africa, except South Africa.

The move is expected to give the bank's merchants a new revenue stream and allow the bank to tap into both expatriate spending and the demand for such products from the region's growing middle class.

The bank, which has been acquiring merchants since December, officially launched its AmEx cards at a function in Nairobi Wednesday. These include the Green and Gold cards for which AmEx is famous.

“The Green Card offers a range of retail and lifestyle benefits and is ideal for those who will mainly use their Card to spend at local merchants in Kenya,” the bank said in a statement. 

“The Gold Card offers an additional tier of travel and lifestyle benefits and is particularly suited to those who are more frequent travellers or more likely to spend on leisure such as dining out.”

The American firm also offers Platinum and invitation-only Centurion “black” cards in other markets.

Additional cards are to be launched in Tanzania and Uganda, subject to regulatory approval.

Equity Bank signed a partnership agreement with American Express in December last year making them the exclusive issuer of AmEx card products in Kenya, Tanzania and Uganda. As part of the agreement, Equity Bank also acquires merchants on to the American Express network in these countries.

The bank today signed a deal that covers the whole continent, except for South Africa.

Delays to ensure the quality of service was world class pushed the introduction of the new products from the first half of the year into the fourth quarter, Equity Bank Group chief executive Mr James Mwangi told the media.

Andrew Stewart, Vice President and General Manager, Partner Card Services Turkey, Middle East and Africa commented: “We are excited to partner with Equity Bank to launch the first American Express Cards in Kenya. This...brings an opportunity to offer tailored products for Kenyan consumers characterised by outstanding rewards and benefits. This marks a key step in our growing partnership with Equity.”

Mr Mwangi said: “At Equity Bank, our mission is to best serve and meet the financial needs of our more than nine million customers, our association with American Express, a world leading payments company, is therefore part of this mission to deliver nothing but the best card solutions.”

American Express, the world’s largest credit card company by purchase volume, is entering a market in which key rival Visa dominates, with millions of cards already issued. While it has previously sought merchant-acquisition deals – signing with Barclays Kenya in 2005, for instance – this is the first time it has given a local bank the mandate to issue its cards.

Equity Bank Group has made significant investments in its diaspora remittances, merchant acquiring infrastructure and banking and transaction processing by connecting to leading global payment systems.