Member Exclusive, Payments

Emphasizing high APY, Amex debuts checking account for SMBs

  • Kabbage Checking offers one of the highest APYs available to SMBs with 1.1 percent interest on balances up to $100,000.
  • SMBs can also access a line of credit between $1,000 and $150,000.
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Emphasizing high APY, Amex debuts checking account for SMBs

The race to serve small businesses is heating up. American Express unveiled its new checking account, Kabbage Checking. The checking account was launched with technology developed by online small business lender Kabbage, which Amex acquired in August last year.

Amex debuted the checking account in June. The product is a no-fee digital account for small and medium sized businesses. It comes with mobile check deposits, a debit card, bill pay and savings features. Customers can also carry out cash transactions at a network of ATMs and retailers. The account also offers 1.1 percent interest on balances up to $100,000.

The account also offers lines of credit between $1,000 and $150,000. Moreover, loans are underwritten in minutes with APIs that analyze a small business’s real-time business data.

Kathryn Petralia, co-founder of Kabbage, says that the company had begun development on Kabbage Checking before it was acquired by Amex. When researching similar business checking accounts among traditional banks, Petralia says that Kabbage found the average annual percentage yield was between 0.00 percent to 0.01 percent. As such, Kabbage Checking offers one of the highest APYs in the industry.


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