What Will Drive Revenue Growth For American Express?

-20.73%
Downside
221
Market
175
Trefis
AXP: American Express Company logo
AXP
American Express Company

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.

amex rev growth

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.

amex growth contri

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for American Express
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