American Express Co. has introduced its new blue-colored credit card in Brazil, where it already has several card alliances with banks and other companies.
The revolving loan product, known as American Express Credit, targets young people and does not compete with the New York company's other offerings in Brazil.
American Express issues cards there through partnerships with Banco de Credito National, Sony Card Administradora, and Banco Excel Economico.
"American Express Credit gives us a wider market," said Helio Lima, president of American Express Brazil.
The blue card was launched last spring in Taiwan and Australia, accompanied by hip and youth-oriented advertising messages. American Express plans to bring the product to countries with promising "Generation X" markets.
In Brazil, the banks in partnerships with American Express are marketing blue cards to checking and savings account customers as well as to MasterCard and Visa holders.
American Express will also promote the product independently. Initially, it plans to offer the card to people who already have its green charge card, positioning the new product as complementary to its traditional one.
The blue card shows "American Express is willing to go to a different, younger market," said Mr. Lima. Its traditional customers, both abroad and in the United States, are generally older and more affluent than those to whom the blue card is meant to appeal.
Still, a Brazilian who gets a blue card cannot be financially questionable.
The annual fee is the equivalent of $66, and the monthly interest rate is about 10%. American Express will reduce the rate by 20% when a customer spends at least $200 a month for six months. Cardholders who spend $400 a month will have the annual fee cut in half.
The blue card is American Express' third revolving card in Latin America. It also offers credit cards in Mexico and Argentina.