American Express Cardholders Can Soon Split Payments via PayPal or Venmo
American Express has teamed up with PayPal and Venmo to give cardholders new ways to pay for their purchases. Card members now have the option to split payments within the Amex Mobile App.
Cardholders can select a transaction on the app and send requests on PayPal or Venmo to family members or friends to split the payment into equal parts. For example, if a utility bill was $150 among three roommates, one roommate could pay the bill and request $50 from each of the other roommates, splitting the bill three ways.
Later this month, users will be able to set specific amounts for each payment request. In the example above, one roommate could pay $100 of the bill while the others pay $25 each. The split can be adjusted to suit the circumstances. Cardholders can track the payments they receive through PayPal or Venmo.
One benefit of this service is that cardholders get to keep all the points they earn for the transaction, even the portion that gets repaid. According to a Wells Fargo study earlier this year, 48% of Millennials are willing to pay for meals to earn extra credit card rewards, and 34% insist on paying to get more points. With Amex’s split payment service, card members can keep the rewards without footing the entire bill.
Starting this week, card members will also be able to use their loyalty points to buy products through PayPal. If a merchant accepts PayPal, a customer can select the Pay with Points option at checkout. Points from a rewards-eligible American Express card will then be applied to the transaction, just like cash.
American Express and PayPal say they have other new features for cardholders coming in 2020.