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American Express (AXP) Launches Blockchain Payment Platform

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American Express Company (AXP - Free Report) recently announced the launch of blockchain-enabled, business-to-business cross-border payments. The new payment system, known as American Express FX International Payments (“FXIP”), has been developed in collaboration with Ripple — a provider of enterprise global blockchain solutions.

This blockchain payments system primarily aims at lowering the time and cost of settlement, along with taking care of American Express’s commitment toward security. The company has selected Santander UK as a partner in order to introduce this new payment channel.

With the collaboration between Ripple and the FXIP, consumers can execute non-card payments through Ripple’s real-time payment network, known as RippleNet. RippleNet would facilitate faster remittances from American Express customers in the United States to U.K. bank accounts through Santander. American Express can now connect with customers across the globe through Ripple’s payments network.

This block chain-enabled new mode of payments not only enhances the scope of international transactions but also makes it easier through simplification of connections across the intermediaries. It also provides immediate end-to-end visibility into the transaction status and cost.

The blockchain technology is expected to play a transformational role in the payments processing industry. In order to maintain its leadership among other companies like Visa Inc. (V - Free Report) , Mastercard Inc. (MA - Free Report) , Discover Financial Services (DFS - Free Report) , etc, American Express has always been engaged in bringing technological improvements and innovations in its offerings. The partnerships with Ripple and Santander are likely to further bolster the company’s foothold in the industry.

Year to date, shares of American Express have gained 26.3%, outperforming the industry’s rally of 12.6%.

This cutting-edge, secure and hassle-free blockchain payments solution would bring a new channel between the United States and the U.K. and benefit the forward-thinking businesses in order to serve their customers in a better way.

Zacks Rank

American Express currently has Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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