The company could invest up to $100 million, says Harshul Sanghi, who was appointed a managing partner of the card company's Enterprise Growth Group in September.
|American Express plans to invest as much as $100 million in early stage companies dedicated to digital commerce.|
The multiyear initiative looks to invest in companies improving on the company's loyalty and reward programs, point-of-sale technology in management and fee-based services, security and fraud detection, cloud-based services and data analysis.
American Express plans to contribute minority investments to these companies. It does not have plans to acquire the start-ups, a spokeswoman says.The initiative will be managed by Sanghi, who is already developing partnerships with technology and venture communities. He was in a similar role at Motorola (MOT). American Express formed the group last year to focus on expanding its traditional card and travel businesses further into alternative mobile and online payments. "As we enter the next chapter in our history, we recognize the need to work with emerging technology companies to inspire change, encourage innovation and ultimately deliver the best products and services to our customers," said Dan Schulman, group president, in a statement. The company plans to focus initially on technology companies in North America, but will expand that to a global search over time. "This is one of those moments where we feel the landscape of payments is changing and we look at ourselves playing in the broader digital commerce space. There is a lot of convergence taking place," Sanghi says. Asked how start-up companies can submit their business plans, Sanghi replied that the company will look first at word-of-mouth referrals through various network channels and in the venture community. Over time American Express will likely establish more direct forms of communication with companies. Until then, "I'm in the Valley and pretty accessible," he adds. -- Written by Laurie Kulikowski in New York. To follow Laurie Kulikowski on Twitter, go to: http://twitter.com/#!/LKulikowski To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV