What Will Drive Revenue Growth For American Express?
Over the 2013-2015 period, American Express (NYSE: AXP) has seen its revenue stay flat in the $32.8 billion to $32.9 billion range. According to our estimates, the revenue is expected to grow to $34.87 billion by the end of our forecast period.
We expect most of this revenue growth to be delivered by the increase in revenue from transaction fees. Transaction fees are a sum of fees paid for maintenance of servers and databases, interchange fees paid to merchant banks for settling transactions and fees paid to issuing banks. An increase in this fee happens as more users are added to a payment network through the acquisition of co-branding partners or issuance of more credit or debit cards.
Have more questions about American Express? See the links below:
- How Much Did American Express’ Revenue & Net Profit Grow In The Last Five Years?
- How Much Can American Express’ Revenue Grow In The Next Five Years?
- What Is American Express’ Fundamental Value Based On Expected 2016 Results?
- How Has American Express’ Revenue Composition Changed In The Last Five Years?
Notes:
- American Express Stock Is Up 17% YTD, What To Expect From Q1?
- Up 21% YTD, Where Is American Express Stock Headed?
- Up 25% YTD, What To Expect From American Express Stock?
- American Express Stock To Beat The Expectations In Q3
- What To Expect From American Express Stock?
- American Express Stock To Top The Consensus In Q2
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