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How AmEx's Latest SMB Partnership Fits Its Long-Term Growth Strategy
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Key Takeaways
American Express partnered with Mercantile and the ABA to launch a business card for lawyers.
The card offers flexible payment options, business rewards and access to AmEx benefits.
AXP's Agile Partner Platform helps expand industry-specific card programs on its network.
American Express Company (AXP - Free Report) is expanding its commercial payments business through another targeted partnership. Together with Mercantile and the American Bar Association (“ABA”), AmEx has introduced the ABA American Express Business Card for solo practitioners and small law firms. Issued by Celtic Bank and operating on the American Express network, the card combines flexible payment options with business-focused rewards and access to AmEx's suite of business benefits.
The offering is built around the everyday needs of legal professionals. Cardholders can earn up to 5% cash back on eligible ABA purchases (capped at $2,000 annually) and 2% cash back on everyday spending, helping them better manage expenses while building business credit. Beyond the product itself, the partnership expands AmEx's presence in a specialized professional segment and further strengthens its commercial card business.
The collaboration also showcases AmEx's Agile Partner Platform (“APP”), which enables issuers and fintech partners to launch industry-specific card programs on the AmEx network. That approach allows AmEx to broaden its commercial payments franchise with tailored solutions while extending the reach of its payment network.
The partnership is unlikely to materially affect near-term earnings. Even so, it aligns well with AmEx's long-term strategy of growing its premium commercial card business. In the first quarter of 2026, net card fees increased 18% year over year, primarily driven by growth in premium card portfolios. By capturing specialized customer segments like the legal profession, AmEx continues to deepen customer relationships and strengthen its commercial payments franchise, an important driver of long-term growth.
How Are Competitors Faring?
American Express faces intense competition in the commercial payments space from Mastercard Incorporated (MA - Free Report) and Visa Inc. (V - Free Report) , both of which are expanding their presence among small and midsized businesses through strategic partnerships and tailored payment solutions.
Mastercard is pursuing a similar strategy by working with partners to broaden its small-business card portfolio. Mastercard’s collaboration with Amazon and U.S. Bank introduced business credit cards that combine rewards, flexible financing options and expense management features for SMB customers.
Visa is also stepping up its focus on the SMB segment. Through initiatives such as Visa & Main and collaborations with fintech companies, Visa is broadening access to digital payment solutions, commercial card products and business financing tools for smaller enterprises.
AXP’s Price Performance, Valuation & Estimates
Shares of AXP have risen 10% over the past year against the industry’s decline of 22.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, AXP trades at a forward price-to-earnings ratio of 18.18X, up from the industry average of 9.92X. AXP carries a Value Score of C.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AXP’s 2026 earnings is pegged at $17.64 per share, implying a 14.69% jump from the year-ago period’s level.
View the Zacks #1 Rank List
Image: Bigstock
How AmEx's Latest SMB Partnership Fits Its Long-Term Growth Strategy
Key Takeaways
American Express Company (AXP - Free Report) is expanding its commercial payments business through another targeted partnership. Together with Mercantile and the American Bar Association (“ABA”), AmEx has introduced the ABA American Express Business Card for solo practitioners and small law firms. Issued by Celtic Bank and operating on the American Express network, the card combines flexible payment options with business-focused rewards and access to AmEx's suite of business benefits.
The offering is built around the everyday needs of legal professionals. Cardholders can earn up to 5% cash back on eligible ABA purchases (capped at $2,000 annually) and 2% cash back on everyday spending, helping them better manage expenses while building business credit. Beyond the product itself, the partnership expands AmEx's presence in a specialized professional segment and further strengthens its commercial card business.
The collaboration also showcases AmEx's Agile Partner Platform (“APP”), which enables issuers and fintech partners to launch industry-specific card programs on the AmEx network. That approach allows AmEx to broaden its commercial payments franchise with tailored solutions while extending the reach of its payment network.
The partnership is unlikely to materially affect near-term earnings. Even so, it aligns well with AmEx's long-term strategy of growing its premium commercial card business. In the first quarter of 2026, net card fees increased 18% year over year, primarily driven by growth in premium card portfolios. By capturing specialized customer segments like the legal profession, AmEx continues to deepen customer relationships and strengthen its commercial payments franchise, an important driver of long-term growth.
How Are Competitors Faring?
American Express faces intense competition in the commercial payments space from Mastercard Incorporated (MA - Free Report) and Visa Inc. (V - Free Report) , both of which are expanding their presence among small and midsized businesses through strategic partnerships and tailored payment solutions.
Mastercard is pursuing a similar strategy by working with partners to broaden its small-business card portfolio. Mastercard’s collaboration with Amazon and U.S. Bank introduced business credit cards that combine rewards, flexible financing options and expense management features for SMB customers.
Visa is also stepping up its focus on the SMB segment. Through initiatives such as Visa & Main and collaborations with fintech companies, Visa is broadening access to digital payment solutions, commercial card products and business financing tools for smaller enterprises.
AXP’s Price Performance, Valuation & Estimates
Shares of AXP have risen 10% over the past year against the industry’s decline of 22.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, AXP trades at a forward price-to-earnings ratio of 18.18X, up from the industry average of 9.92X. AXP carries a Value Score of C.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AXP’s 2026 earnings is pegged at $17.64 per share, implying a 14.69% jump from the year-ago period’s level.
Image Source: Zacks Investment Research
AXP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.