by Alex Palmer | August 29, 2017
American Express is selling its U.S. prepaid gift card business to InComm Holdings Inc. The two announced the deal, which is expected to close the first quarter of 2018, on Aug. 24. InComm will acquire the exclusive distribution rights of American Express' prepaid reloadable and gift card products, serving as manager and processor of the cards. American Express will continue to serve as the issuer for its prepaid products.

The deal includes all of American Express' U.S. B2B rewards and incentive gift card products, as well as tax disbursements and general purpose reloadable (GPR) cards. 

"One of InComm's core business objectives is to power successful incentive programs with a robust suite of prepaid rewards that ultimately help businesses engage customers, prospects, employees, partners and more," Mike Fletcher, general manager at InComm Digital Solutions told Incentive. "Through this transaction, we're acquiring an industry-leading, general purpose reloadable technology platform and new distribution channels that will strengthen the offerings we provide our partners' businesses. When it comes to fulfilling incentive programs, our partners can now access an even greater range of products, which will ultimately help fuel their business growth."

American Express was also bullish about what it called "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," said Stefan Happ, executive vice president and general manager of global prepaid and alternative payments for American Express, in a statement.

In addition to adding American Express products to its physical and digital gift card selection, InComm also expanded its processing capabilities in the deal through the acquisition of the financial services company's Serve technology platform. 

InComm has already been providing the point-of-sale technology that activates AmEx prepaid cards, and these products will further expand the already wide selection of physical and digital products InComm offers its distribution partners. InComm also expands its processing capabilities in the deal by also acquiring AmEx's Serve technology platform.

"We're excited to integrate American Express's U.S. prepaid cards into our offerings," added Fletcher. "Adding the exclusive distribution of American Express products and the Serve general purpose reloadable platform to InComm's already extensive product and technology portfolio will provide our partners' businesses with yet another offering to drive engagement and increase revenue."