American Express Co.’s launch this week of a social media iPhone application that enables users to share information about their purchases represents one of the boldest moves lately by a credit card issuer and one that competitors already are watching closely, analysts say.
AmEx on Sept. 22 rolled out Social Currency, an iPhone app targeting young adults using technology from Foursquare, a separate social-media app designed to track users’ movements through mobile devices. An AmEx spokesperson says the company plans to soon extend Social Currency to Android mobile devices as well.
Social Currency invites users to publish details about their purchases to the site, including the price they paid and other details. Supplying purchase and price details is optional; users also may note purchases they want to make in the future.
“This is a somewhat radical move by AmEx,” Brian Riley, senior research director at TowerGroup, tells PaymentsSource. “Harnessing this type of really personalized social media tool is something everyone in the card industry has talked about but so far no one has jumped this deep into the water.”
AmEx simultaneously launched Currency, a new personal finance education Web site. Created in partnership with Federated Media, the site provides articles, tips and opportunities for consumers to share their information and experiences about managing finances and using cards. AmEx plans to include 20 new articles each week on the site, and “user feedback will play an integral part in shaping and growing content,” the company said in a statement.
Social media within the past two years has become a hot button many corporations are struggling to harness, and while many card issuers and networks are experimenting with it, few have determined their ultimate strategies (
“Social media is of great interest to everyone right now, and there is definitely going to be a play to drive new business and customers. But no one knows exactly how to use it yet,” Riley says. “There will be some stumbling and a lot of concern about privacy and where are the limits on how much information consumers should share, but making the first move and gaining some critical mass could give AmEx an advantage.”
The tie-in with Foursquare sets AmEx’s iPhone app apart from other marketers’ social-media offerings, Riley says. “Foursquare is a big player in this area, and this should produce some interesting insights for AmEx,” he says.
The move also underscores AmEx’s commitment to targeting young adults in its marketing efforts, Megan Bramlette, a director with Auriemma Consulting Group, tells PaymentsSource.
“This is innovative and pushes the envelope in targeting younger consumers,” she says.
Launched in March 2009, New York-based Foursquare claims 3 million users worldwide and lists some 15,000 venues around the world.
Other card issuers and networks also are experimenting with social media.
Citigroup Inc. in August hired social-media guru Frank Eliason to the new role of senior vice president of social media. Eliason previously was senior director of national customer operations for cable TV giant Comcast Corp.
Citi earlier this year launched Citi Shopper, a location-based mobile application delivering local offers and deals to its card consumers. The application is available for the iPhone, Research In Motion Ltd.’s BlackBerry and Google Inc.’s Android phones. The company also handles general banking and card customer service inquiries via Twitter and, besides a presence on MySpace.com, it soon will be on Facebook as well, a Citi spokesperson says.
JPMorgan Chase & Co. last year launched a Facebook presence for its Chase Freedom card and in July added its Ink from Chase.
Bank of America Corp. provides live customer-service help via Twitter, but the company is not leveraging social media channels for marketing credit or debit cards, a spokesperson says.
Visa Inc. has a variety of social-media offerings, including a Facebook presence for its Visa Signature and for its prepaid debit products, a spokesperson says. Visa also used Facebook and YouTube to promote its World Cup sponsorship this year.
MasterCard Worldwide has two Twitter channels for consumers and corporate users, and two YouTube channels and a Facebook page, a spokesperson says.
Discover Financial Services is using Facebook and Twitter to shape its customized-card offerings (
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