Is American Express Winning the Loyalty Battle Against Fintechs?

In today’s world, where digital-first fintech companies are transforming the payments scene, American Express Co AXP 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 and Visa Inc. V.

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%.

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.

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.

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.

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This article originally published on Zacks Investment Research (zacks.com).

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