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American Express Co. expects its pilot program enabling cardholders to add their payment information at participating online merchants will please cardholders and make for smoother checkouts.
The pilot, announced Thursday, allows AmEx cardholders to add or update their card information and store it for use at a participating merchant through the AmEx Web site, as opposed to storing the data with individual merchants.
For merchants, the new card-on-file process creates a better cardholder experience by reducing friction during checkout, AmEx says. AmEx cardholders who have purchased items previously at one of the select merchants, but have not saved their cards for future transactions, can now do so when prompted at checkout, AmEx says.
AmEx is working with Knot, a fintech specializing in card-on-file management, to support the new initiative. The pilot makes use of Knot’s CardSwitcher app, which allows customers to change their payment methods without entering their card information.
The program is being tested with an undisclosed number of consumers and small-business cardholders and with three merchants: Bloomingdale’s, Hilton Hotels and Resorts, and Macy’s.
“We created this pilot to solve a common pain point: helping card members add cards on file to their favorite merchants with ease,” Stephanie Schultz, vice president, head of strategy and partnerships for AmEx Digital Labs, says by email. “The functionality makes it simpler for our customers to add cards on file without needing to manually enter their card information and requires no technical integration from the merchant.”
AmEx became an investor in Knot in 2023 through Amex Ventures, the card company’s venture-capital arm.
