NatWest to Issue Credit Cards for American Express Global Network

American Express Co. is inching closer to its goal of offering consumers bank-issued credit and charge cards in the United States.

The New York financial services firm said Tuesday that it has agreed to allow National Westminster Bank to issue credit cards that will operate on American Express’ global network.

NatWest, based in London, plans to test its American Express card in Britain before rolling it out globally, said Patrick Boylan, managing director of NatWest card services.

On the surface, the NatWest agreement is nothing new for American Express--after all, the company already allows other foreign banks to issue its products. However, NatWest eventually plans to use the card as a key part of its thrust into the U.S. credit card market.

“We want to get the process right before we decide to extend it to other opportunities in the U.S.,” Boylan said. He declined to give a possible time frame for a U.S. roll-out of the product.

In addition, NatWest and American Express agreed with UAL Corp. to offer a United Airlines corporate credit card that operates on the American Express merchant network, adding a bank-issued corporate card to American Express’ U.S. product portfolio. UAL is the parent of United.

The news sent American Express shares up $2.875 to close at a 52-week high of $54.875 on the New York Stock Exchange.

American Express has long been pushing to get U.S. banks to issue its products.

However, most U.S. banks that issue credit cards are members of the Visa International and MasterCard International Ltd. networks, which have bylaws prohibiting members from issuing products of other companies, such as American Express or Dean Witter Discover & Co.