Kabbage, an online lending Fintech that was acquired by American Express (NYSE:AXP) has announced the launch of “Kabbage Checking,” said to be the first business checking account offered by American Express and built for U.S. small businesses. To help encourage uptake of the new service, SMEs holding $100,000+ in Kabbage Checking will generate an APY of 1.10% during a time of little to no yield held in current accounts.
Kabbage notes that there are no set-up or monthly fees.
According to a release, Kabbage Checking is the first of several new digital cash flow management solutions emerging from American Express as it seeks to boost its Fintech cred.
American Express has also begun offering Kabbage Funding to its existing customers with plans to make it more broadly available later this year. Kabbage Funding offers flexible lines of credit between $1,000 and $150,000.
Gina Taylor Cotter, Senior Vice President of Strategy and Business Operations at Kabbage, says that SMEs should not have to sacrifice features in an affordable checking account:
“Kabbage Checking is built to give small businesses the flexibility of mobile banking—from in-app account management to mobile check deposits—with the convenience of a traditional bank—including in-person cash deposits, free ATM access, and a compelling APY to directly support our customers’ growth.”
Small business owners may apply online for a Kabbage Checking account regardless of their business’s age or revenue.
Additional features include free in-network ATM access, mobile deposits, debit card, bill pay, and more.
American Express is on a mission to be a digital one-stop shop to help manage small businesses in their financial needs in a very competitive Fintech world.
