American Express has launched a virtual card solution for business expenses for temporary workers, recruits and employees—travelers who don't have traditional corporate cards. Dubbed American Express Go, the platform enables midsize and large companies to monitor and control spending by their "extended workforce" while enabling freelancers, prospective employees and others to make purchases with company funds, obviating the need for reimbursement.
"Midsized and large companies are operating with a new, dynamic workforce, as they increasingly employ freelancers and contractors, who previously had to wait for several weeks to be reimbursed for business and travel purchases," said Gint Balodis, VP of global B2B products for American Express Global Commercial Services.
American Express Go is powered by the network's vPayment virtual card platform, which enables business clients to create specific-use virtual account numbers with pre-authorized spend controls. The VANs can be used over the phone or online to make purchases immediately upon account creation, and a companion plastic card can be used for in-person purchases, such as business meals, once it arrives. Companies can set spending and time frame limits and reload the cards as needed, so a new card doesn't have to be issued for further expenses. A companion mobile app enables cardholders to track card usage and monitor account balances.
From the user's perspective, the card acts as a declining-balance prepaid card, and Amex bills the corporate client only for the total amount settled on the card in a given month. Fees include a one-time fee of $2 per user profile created for mobile or phone-only purchases, and $5 per profile for a traveler who also will possess a plastic card, plus a $10 fee for rush servicing.
While many in the corporate travel industry have extolled the convenience and control offered by virtual cards, the products have struggled to catch on in the U.S. due to a lack of familiarity, perceived acceptance issues and difficulty finding bank issuer partners. But that could be changing. Last year, AirPlus launched its Mobile A.I.D.A. virtual card solution in the U.S., and in April, Mastercard and Conferma partnered to enable Mastercard-issuing banks to white-label and manage virtual card issuance in the U.S. and around the globe.
For its part, American Express has leveraged its position as an issuer itself to do an end run around bank partnerships for virtual card issuance. The network's vPayment platform has operated for more than a decade, and in July 2017, Amex struck a deal with Conferma to enhance its Business Travel Account product via virtual cards.