Trade PressOctober 2026
American Express Converts Card Rewards Into Bank Deposits
American Express is deepening its closed-loop advantage by collapsing the redemption layer into its own deposit infrastructure, keeping reward-driven cash flows entirely within its banking entity rather than leaking value to external institutions. For issuer processors and competing network participants, this is a structural tightening of the AmEx ecosystem — reducing cardholder off-ramp behavior and reinforcing deposit stickiness as a retention mechanism that pure network players cannot replicate.
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