Where We Expect American Express’ Revenue Growth To Come From

-23.07%
Downside
228
Market
175
Trefis
AXP: American Express Company logo
AXP
American Express Company

American Express (NYSE: AXP) generates close to two-thirds of its revenue from transaction fees charged on card transactions. Over the 2016-2020 period, we expect its revenue to grow by close to 10%. Over the same period we expect most of this revenue growth to be contributed by revenue from transaction fees, as the company tries to make its debit and credit cards as universally acceptable as Visa and Master Card issued cards. This would mean that the company would have to increase its network of co-branding partners and possibly lower its transaction fees. We have written previously about the potential impact of increase in transaction fees on American Express’ stock price and why we expect its transaction fees to decline.

axp rev growth

 

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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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