American Express Company (NYSE:AXP) has now decided to team up with Jawbone, a consumer products company that has popularized fitness bands, to create a new payment option that differs from plastic cards. This new feature will be available in future products by Jawbone.
Recently, alternative methods of payments have generated quite an interest among people. With the growth of technology-based products, new payment options are explored. These alternative payment methods pose new challenges for traditional methods of card payment. Alternative methods like online payment have already been established. The mobile payment system is the new frontier. Recently, Apple Inc (NASDAQ:AAPL) introduced new payment options via Apple Watch.
American Express Company (NYSE:AXP) seems to be willing to introduce a new payment option. This time, it involves your fitness band. Jawbone has created fitness bands that measure the distance user has walked, the heart rate and relevant fitness data. These fitness bands have been quite popular recently. It appears that the users of these bands will soon be able to make payments via their fitness bands, thanks to American Express Company (NYSE:AXP). The partnership will be announced later this week.
This announcement has surely heat up the discussions about the alternative methods of payments. If the service is launched as rumored, it will face competitions from similar services like Apple Pay and Google Wallet. Apple Pay was introduced last year, and it was made available for iPhone 6 users. Google Wallet is popular with Android Smartphone users. These services user near field technology, a technology that is yet to be accepted widely. According to sources, less than 10% merchants in the United States use this technology. However, the situation will soon be changed as more merchants adopt to the technology.
American Express Company (NYSE:AXP) has not commented on the details of the partnership yet. However, it is confirmed that the upcoming product from Jawbone called UP3 will not have this feature. If the deal is successful, the tech savvy users will be able to enjoy shopping and fitness with one equipment.