American Express looks to cash in on Chinese market

American Express Co, the largest credit-card issuer based on purchases, is seeking to extend its services to young affluent consumers in China, hoping to tap into their purchasing potential in outbound tourism and international online shopping.

On Monday, the credit card issuer launched two credit cards under a partnership with Bank of China, the country's fourth largest lender by assets.

Cardholders can enjoy benefits and services such as lodging privileges, cash rebates, airport shuttle services, free international wifi, dining discounts, global medical assistance and emergency rescue services, according to the company.

Dave Keung, managing director for China at American Express, said the two credit cards will target young Chinese customers who love travel and online shopping.

"While maintaining our leading position among high-end customers in China, we are hoping to capture quality customers from different walks of life with strong spending power and sophisticated demand for lifestyle-related products and services," Keung said.

China has become one of the fastest growing markets for American Express. Without offering specific China market data, Keung said the number of its Chinese clients and the transaction value has increased substantially over the past four years.

The company acknowledged the rapid development of mobile payment services led by Chinese third-party payment companies such as Alipay, the digital wallet run by e-commerce giant Alibaba Group, and WeChat Wallet owned by Tencent Holdings, but Keung doesn't seem worried.

"We hope to form complementary partnerships with the local third-party payment companies. The ideal situation for us is to turn our competitors into our partners," Keung said.