American Express Co. announced its third partnership with a financial institution in Latin America.
Credomatic, which issues 700,000 MasterCard and Visa cards in Guatemala, Honduras, El Salvador, Nicaragua, and Costa Rica, has agreed to issue American Express cards in those countries by the end of the year.
American Express said the relationship would bring 36,000 merchants into its Central American card-acceptance network. Costa Rica-based Credomatic issues cards and serves as a merchant acquirer for Visa, MasterCard, and several proprietary labels.
American Express also has made deals with MasterCard members Banco Consolidado of Venezuela and Banco de Credito Nacional, Brazil's sixth- largest bank, to issue cards on its network.
American Express has become increasingly successful in forging alliances with members of the bank card associations abroad. But its plans to do the same in the United States have been impeded by Visa and MasterCard rules that prevent member banks from issuing American Express cards.
"We will grow our business through external alliances, in which banks issue their products, riding on our network," said Roberto Cavalcanti, American Express' president for Latin America and the Caribbean.
Mr. Cavalcanti, 48, was named president last month after heading the region on an interim basis for four months with American Express' president of Mexico operations. Previously, Mr. Cavalcanti, a 17-year American Express veteran, was country manager for Brazil.
He said American Express plans to increase its market share in Latin America by offering revolving credit.
Credomatic will issue American Express green, gold, and revolving card products. It will be responsible for back-office functions, while American Express will provide marketing support.
Credomatic plans to offer the American Express products to its existing customers. Ernesto Castegnaro, chief executive of Credomatic, said the strategy would not cannibalize its Visa and MasterCard portfolios.
"The customers in the end will decide what to do," he said. Some of them may get American Express "as an additional card."
