American Express taps Gusto for embedded payroll

American Express is partnering with Gusto  to introduce an embedded payroll product for small businesses.

Scheduled to launch early next year, the product will allow customers to enroll, manage and run payroll within their American Express Business Checking accounts. It will also feature an AI-powered tool providing insights into upcoming payroll payments.

Customers will pay a monthly fee for the service, while eligible American Express small business cardholders will be able to earn monthly credits deposited into their Business Checking accounts after completing qualifying activities.

The product is powered by Gusto Embedded, which allows financial institutions and software platforms to offer payroll under their own customer experience. Gusto serves more than 500,000 small businesses.

The payroll announcement is part of a broader expansion of American Express Business Banking, which now combines business checking with a new high-yield savings account.

Separately, Gusto is hiring licensed P&C brokers for a pilot intended to establish its digital insurance agency. The brokers will quote and issue small commercial policies primarily through NEXT Insurance, support complex risks and help train “Gus,” Gusto’s AI insurance advisor. Gusto currently operates an insurance agency focused on employee benefits and earns commissions from insurance products sold through its platform.