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American Express Company  (AXP)
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American Express's

Competitiveness


 

AXP Sales vs. its Competitors Q3 2021



Comparing the results to its competitors, American Express reported Total Revenue increase in the 3 quarter 2021 by 26285.53 % year on year.
The sales growth was above American Express's competitors average revenue growth of 27.32 %, recorded in the same quarter.

List of AXP Competitors

With net margin of 9.11 % company reported lower profitability than its competitors.

More on AXP Margin Comparisons



Revenue Growth Comparisons




Net Income Comparison


American Express Company Net Income in the 3 quarter 2021 grew year on year by 6923.08 %, faster than average growth of American Express's competitiors of 64.25 %

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American Express's Comment on Competitors and Industry Peers


Our global card network competes in the global payments industry with other card networks, including, among others, Visa, MasterCard, Diners Club International (which is owned by Discover Financial Services), Discover (primarily in the United States) and JCB and China UnionPay (primarily in Asia). We are the fourth largest general-purpose card network on a global basis based on purchase volume, behind Visa, MasterCard and China UnionPay. In addition to such networks, a range of companies globally, including merchant acquirers and processors and companies such as PayPal, carry out some activities similar to those performed by our GMS and GNS businesses. No other single entity engages on a global basis in the full range of activities that are encompassed by our closed-loop business model.

Another aspect of network competition is the recent emergence and rapid growth of alternative payment mechanisms and systems, which include aggregators (such as PayPal, Square and Amazon), wireless payment technologies (including using mobile telephone networks to carry out transactions), electronic wallet providers, prepaid systems and systems linked to payment cards, and bank transfer models such as ACH and wire transfers.

New technologies, together with the portability provided by smartphones and tablets and evolving consumer behavior with social media and networking, are rapidly changing the way people interact with each other and transact business all around the world. Traditional and non-traditional competitors such as mobile telecommunications companies and aggregators are working to deliver digital and mobile payment services for both consumers and merchants. Competition remains fierce for capturing and maintaining online and mobile spend in the ever-increasing digital world, and alternative business models present a significant challenge. For example, aggregators like PayPal have the ability to provide payment services to merchants for multiple payment networks. In addition, new entrants to the digital payments space such as online, social media, telecommunications and technology companies represent additional competitive and potentially disintermediating factors in the card payment industry given the scale of their customer relationships, large cash reserves and other resources available to develop new platforms and technologies, and their strategies to use payments as a tool to support other sources of revenue.

To the extent alternative payment mechanisms and systems, such as aggregators, continue to expand successfully, discount revenues and potentially other revenues, as well as our ability to access transaction data through our closed-loop network, could be negatively impacted. In the United States, alternative payment vehicles that seek to redirect customers to payment systems based on ACH continue to emerge and grow, merchants with recurring billing models actively seek to switch customers to payment through direct debits from bank accounts, and existing debit networks also continue to expand both on- and off-line and are making efforts to develop online PIN functionality, which could further reduce the relative use of charge and credit cards online.

Some of our competitors have attempted to replicate our closed-loop functionality. JPMorgan Chase announced it would partner with Visa to develop Chase Merchant Services. Efforts by some card networks, payment providers and non-traditional competitors to replicate the closed loop reflect both its continued value and the intensely competitive environment in which we operate.

Our proprietary Card business encounters substantial and intense competition in the United States and internationally. As a card issuer, we compete in the United States with financial institutions that issue general-purpose charge and revolving credit cards (such as Bank of America, Capital One Financial, Citibank, Discover Financial Services and JPMorgan Chase). We also encounter competition from businesses that issue their own private label cards or otherwise extend credit to their customers, such as retailers and airline associations, although these cards are generally accepted only at limited locations. In recent years, we have faced increasingly intense competition in the small business sector, as competitors have targeted OPEN’s customer base and our leadership position in providing financial services and other fee-based solutions to small businesses.

The largest competing issuers have continued to grow, in several cases by acquiring card portfolios, and also by cross-selling through their retail branch networks. Competing card issuers offer a variety of products and services to attract cardholders, including premium cards with enhanced services or lines of credit, airline frequent flyer program mileage credits, cash rebates and other reward or rebate programs, services for small business owners, “teaser” promotional interest rates and rewards points for both credit card acquisition and balance transfers, and co-branded arrangements with partners that offer benefits to cardholders.
Most financial institutions that offer demand deposit accounts also issue debit cards to permit depositors to access their funds. Use of debit cards for point-of-sale purchases has grown as most financial institutions have replaced ATM cards with general-purpose debit cards bearing either the Visa or MasterCard logo. Debit cards were historically marketed as replacements for cash and checks, and transactions made with debit cards have typically been for smaller dollar amounts. However, debit cards are increasingly perceived as an alternative to credit or charge cards and used in that manner. Additionally, overdraft accounts can be used by our competitors to extend credit to customers when transaction values exceed monies available in a linked demand deposit account.

The corporate payments sector is dynamic and highly competitive, with much overlap between corporate and consumer payment cards and services and competition increasingly intense at both the payment provider and network levels. We are seeing increased product and price competition from payment providers, including larger regional and national banks. Customers are increasingly seeking payment products that integrate with their expense management tools and support electronic payment methods. With respect to competition at the network level, both Visa and MasterCard continue to support card issuers such as Citibank, JPMorgan Chase and U.S. Bank, including by improving data collection and reporting to meet customers’ requirements. In addition to product and price competition, other key competitive factors in the corporate payments business include global servicing capability, quality of data, and access to additional services, such as reporting and program management tools, and customer experience.

GBT continues to adjust to the shift of its clients’ preferences, and the resulting shift of some volume, from high-touch personal service to online channels and automated servicing tools. GBT also continues to face intense competition in the United States and internationally from numerous traditional and online travel management companies, as well as from airlines’ direct-to-consumer business, other travel suppliers, accredited in-house corporate travel agents and new entrants to the travel industry. Competition among travel management companies is mainly based on price, service, value creation, convenience, global capabilities and proximity to the customer.
For many years, consumer and business travel agencies (including travel management companies) have faced pressure on revenues from airlines, as most airlines have stopped paying “base” commissions to travel agents for tickets sold and significantly reduced other forms of travel agent compensation. Airlines have also made efforts to increase the number of transactions booked directly through their websites. These trends have reduced the revenue opportunities for travel management companies because they do not receive distribution revenue from transactions booked directly with the airlines. In recent years, the airline industry has undergone bankruptcies, restructurings, consolidations and other similar events including expanded grants of antitrust immunity to airline alliances. This antitrust immunity enables otherwise independent airlines to closely coordinate their international operations and to launch highly integrated joint ventures in transatlantic and other regions. These types of structural changes may result in additional challenges to travel management companies.





  

Overall company Market Share Q3 2021

Due to outstanding performance in Overall company, revenue grew by 26285.53 % American Express Company improved its market share, to approximate 14.34 %.





<<  More on AXP Market Share.
 

*Market share calculated with total revenue.


AXP's vs. Competition, Data

(Revenue and Income for Trailing 12 Months, in Millions of $, except Employees)



COMPANY NAME MARKET CAP REVENUES INCOME EMPLOYEES
American Express Company 20,542 123,417 2,173 62,800
Capital one financial corp 31,715 65,714 12,422 46,000
Jpmorgan Chase and Co 131,414 486,616 48,275 241,359
Western Union Co 5,058 6,691 814 9,000
Providian Financial Corporation 0 0 0 0
Visa Inc 24,105 429,889 12,311 8,500
Mastercard Incorporated 17,505 320,928 7,821 10,300
SOVEREIGN BANCORP, INC. 0 0 0 0
First Data Corp 9,569 30,771 1,213 0
General Electric Company 75,754 109,164 -109 305,000
Discover Financial Services 11,489 34,144 5,051 14,676
Citigroup inc 70,454 132,716 22,847 241,000
Bank Of America Corporation 87,152 388,631 30,435 224,000
Ifan Financial, Inc. 0 0 0 1
Euronet Worldwide Inc 2,891 5,777 144 5,600
Fastfunds Financial Corp 0 0 0 36
Net 1 Ueps Technologies Inc 123 273 -22 5,701
Xoom Corp 156 0 6 295
Everi Holdings Inc 600 2,137 65 900
Green Dot Corp 1,387 2,133 34 1,012
General Electric Capital Corp 44,497 0 5,948 47,000
Blackhawk Network Holdings, Inc 2,254 2,550 -157 2,331
Synchrony Financial 13,549 26,939 4,104 12,000
Lans Holdings, Inc. 0 0 0 2
Veritec Inc 0 2 -1 3
Diebold Nixdorf Incorporated 3,841 667 -141 16,000
Paymentus Holdings Inc 1,070 3,516 -9 5,900
Aci Worldwide Inc 1,291 3,595 85 3,979
Bottomline Technologies Inc 483 1,990 -22 1,600
Q2 Holdings Inc 476 4,562 -125 844
Net Element Inc 93 78 -3 97
On Track Innovations Ltd 10 12 -10 120
SUBTOTAL 557,477 2,182,914 153,149 1,266,056


       
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