American Express Company (AXP – Free Report) recently announced that the company is expanding its partnership with Square, a commerce solutions provider, to launch an upcoming credit card designed specifically for Square sellers. This decision should benefit small businesses.
Square already provides services such as loans, savings, checking and more, and the deal with American Express will see it offer its first-ever credit card to small businesses in the United States. The partnership is expected to strengthen Square’s internal banking options and provide a competitive advantage.
The new credit card is expected to be powered by i2c and backed by American Express’ extensive network. It will probably be issued by Celtic Bank. It should allow merchants to manage their finances and cash flow on the same platform they use to manage their businesses.
Further details about the card and its benefits are expected to be released in 2023. Partnerships like this help American Express expand its presence in the small business landscape. A large portion of AmEx’s customers are small businesses, which have suffered the most from the COVID pandemic.
Now that things are looking up and small businesses are bouncing back, AXP’s financial products are seeing a surge in demand. Steps like these help AmEx quickly expand its domestic business and diversify its revenue streams.
AXP’s revenues are on an upward trend, led by several growth initiatives, such as launching new products, improving existing ones, revamping pricing, entering into new agreements and forming alliances , among others.
Shares of American Express have fallen 2.3% over the past six months, compared to 1.8% for the industry.
Image source: Zacks Investment Research
Zacks ranking and key picks
American Express currently has a Zacks rank of #3 (Hold). Some stocks ranked higher overall finance space are American Financial Group, Inc. (AFG – free report), StoneX Group Inc. (SNEX – free report) and Midwest Holding Inc. (MDWT – Free Report), each carrying a Zacks Rank #2 (Buy) at present. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Based in Cincinnati, OH, American Financial is a leading insurance holding company. The Zacks consensus estimate for AFG’s bottom line in 2022 is pegged at $11.66 per share, which has seen two upward revisions to estimates in the past 60 days versus none in the opposite direction.
New York-based StoneX Group operates as a global financial services network. The Zacks consensus estimate for SNEX’s current year net income points to 54.8% year-over-year growth.
Based in Lincoln, NE, Midwest Holding is a financial services company. The Zacks consensus estimate for MDWT’s earnings in 2022 is pegged at 65 cents per share, signaling a 185.5% increase from a year ago.