We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is American Express Winning the Loyalty Battle Against Fintechs?
Read MoreHide Full Article
Key Takeaways
American Express is strengthening loyalty through rewards, perks, and exclusive partnerships.
AXP's network volume rose 5% in 2024 and 6% in the first half of 2025.
Digital tools like AI fraud detection and faster onboarding boost AXP's customer engagement.
In today’s world, where digital-first fintech companies are transforming the payments scene, American Express Co (AXP - Free Report) is up against a significant challenge — keeping its loyal cardholders engaged while also appealing to a new wave of tech-savvy customers.
AXP seems to be holding its ground, and in some instances, even bolstering its position. The company has a unique edge thanks to a loyalty ecosystem built over many years. This is anchored by its Membership Reward program, exclusive partnerships and a range of premium perks. In 2023, the network volume was around $1.7 billion, which rose 5% year over year in 2024. It further rose 6% year over year in the first half of 2025. With its strategies, AXP has the ability to retain its consumer base.
In recent years, AXP has also leaned into digital transformation, rolling out AI-powered fraud detection, tailored offers and faster onboarding processes. These initiatives are designed to bridge the tech gap with fintechs while still holding the prestigious image that has been a hallmark of the brand for decades. By forming strategic partnerships in areas like travel, dining and entertainment, the company is enhancing customer engagement.
While fintech companies might have the edge with their fresh ideas and quick adaptability, AXP shines when it comes to providing premium perks and building strong and lasting relationships. If the company can keep striking the right balance between its traditional and innovative approach, it is likely to stay at the forefront of loyalty — even as the fintech landscape evolves.
How Are Competitors Faring?
Some of AXP’s competitors in the payments space include Mastercard Incorporated (MA - Free Report) and Visa Inc. (V - Free Report) .
Mastercard has positioned itself as a tech-savvy leader, pouring resources into cybersecurity, AI-driven fraud prevention and teaming up with super-apps to keep itself at the heart of everyday transactions. Mastercard’s purchase transactions rose 9.6% year over year in the first half of 2025.
Visa continues to hold its position as the top player in payments volume, thanks to its extensive network of merchant acceptance and a strong focus on innovations like tokenization, real-time payments and cross-border transactions. Visa's payments volume increased 8% year over year on a constant-dollar basis in the third quarter of fiscal 2025.
American Express’ Price Performance, Valuation & Estimates
Shares of AXP have lost 0.2% in the year-to-date period against the industry’s growth of 2.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, American Express trades at a forward price-to-earnings ratio of 17.88X, down from the industry average of 20.65. AXP carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for American Express’ 2025 earnings is pegged at $15.25 per share, implying a 14.2% jump from the year-ago period.
Image: Bigstock
Is American Express Winning the Loyalty Battle Against Fintechs?
Key Takeaways
In today’s world, where digital-first fintech companies are transforming the payments scene, American Express Co (AXP - Free Report) is up against a significant challenge — keeping its loyal cardholders engaged while also appealing to a new wave of tech-savvy customers.
AXP seems to be holding its ground, and in some instances, even bolstering its position. The company has a unique edge thanks to a loyalty ecosystem built over many years. This is anchored by its Membership Reward program, exclusive partnerships and a range of premium perks. In 2023, the network volume was around $1.7 billion, which rose 5% year over year in 2024. It further rose 6% year over year in the first half of 2025. With its strategies, AXP has the ability to retain its consumer base.
In recent years, AXP has also leaned into digital transformation, rolling out AI-powered fraud detection, tailored offers and faster onboarding processes. These initiatives are designed to bridge the tech gap with fintechs while still holding the prestigious image that has been a hallmark of the brand for decades. By forming strategic partnerships in areas like travel, dining and entertainment, the company is enhancing customer engagement.
While fintech companies might have the edge with their fresh ideas and quick adaptability, AXP shines when it comes to providing premium perks and building strong and lasting relationships. If the company can keep striking the right balance between its traditional and innovative approach, it is likely to stay at the forefront of loyalty — even as the fintech landscape evolves.
How Are Competitors Faring?
Some of AXP’s competitors in the payments space include Mastercard Incorporated (MA - Free Report) and Visa Inc. (V - Free Report) .
Mastercard has positioned itself as a tech-savvy leader, pouring resources into cybersecurity, AI-driven fraud prevention and teaming up with super-apps to keep itself at the heart of everyday transactions. Mastercard’s purchase transactions rose 9.6% year over year in the first half of 2025.
Visa continues to hold its position as the top player in payments volume, thanks to its extensive network of merchant acceptance and a strong focus on innovations like tokenization, real-time payments and cross-border transactions. Visa's payments volume increased 8% year over year on a constant-dollar basis in the third quarter of fiscal 2025.
American Express’ Price Performance, Valuation & Estimates
Shares of AXP have lost 0.2% in the year-to-date period against the industry’s growth of 2.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, American Express trades at a forward price-to-earnings ratio of 17.88X, down from the industry average of 20.65. AXP carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for American Express’ 2025 earnings is pegged at $15.25 per share, implying a 14.2% jump from the year-ago period.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.