American Express and MBNA Announce Card Issuing Alliance

"Today’s news marks a fundamental change in the U.S. credit card industry and we believe it will lead to better value and greater choice for consumers," said Ken Chenault, Chairman and CEO of American Express. "Our partnership with MBNA will be a catalyst for change and generate an environment that fosters greater product innovation in the years ahead. This partnership will also leverage the American Express global network, and help to deliver even greater value to merchants in the form of additional high-spending, loyal customers."

Commenting on the announcement, MBNA President and CEO Bruce L. Hammonds said, "Research we’ve performed over the years tells us that our customers, our affinity partners, and the members of our affinity groups will be very receptive to an MBNA product with an American Express brand. We are pleased to have an agreement with American Express that makes economic sense for both organizations and that provides MBNA numerous marketing opportunities around the world."

This is a historic day for American Express -- having for years wanted to enlist major US banks as issuing partners. For MBNA, they're joining a third payment network -- in addition to MasterCard and Visa -- for their card issuing activities. American Express has established a business unit called Global Network Services to focus on partnering with bank partners. An FAQ is available online.

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