American Express Buys Gaming Payment Provider

American Express has spent $30 million to buy Sometrics, a virtual currency company that works with social game providers including BigPoint, Nexon and OMGPOP.

The Sometrics platform will be integrated into Amex Serve, the credit card company's recently launched, PayPal-like online and mobile payment system. This integration will eventually allow Serve users to "purchase virtual currency for hundreds of games," and participate in loyalty programs from various merchants.

American Express also offers users of its Membership Rewards program to redeem their points for virtual currency and goods in Zynga's social games.

The long-running Membership Rewards program has previously allowed users to earn points when they use their American Express cards for purchases, then exchange those points for bonuses like free flights, electronics, gift cards, and more. Virtual currency

In an agreement that the two companies call "an industry first", American Express and Zynga have partnered to provide exclusive virtual goods (Amex Outdoor Fountain), physical game cards, and virtual game cards for Zynga titles to Membership Rewards participants.

Those game cards will be available in a variety of amounts and can be used to buy virtual goods in Zynga's popular Facebook releases like FarmVille, FrontierVille, PetVille, and Cafe World.

American Express also offers game-specific prepaid cards. Right now, one might argue that American Express can make a business out of allowing users to buy virtual game credits with real currency. But it is hard not to envision circumstances under which Amex might like to have the ability to operate a "cash in, cash out" virtual currency model as well.

American Express Buys Gaming Payment Provider Sometrics